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Contents
27 8
10 14
16 6
Executive Editor’s Column
7
Calendar
8
Investor Profile: Larry Puckett Chevrolet
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Q&A with Stephen J. Pemberton, 2010 Diversity Summit Keynote Speaker & Chief Diversity Officer, Monster Worldwide
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Troy Montgomery Adds Master’s Programs
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Teamwork Lands Hyundai Heavy Industries Deal
20
Alabama Business Confidence Index Signals Economic Growth
21
Business Buzz
26
Members on the Move
27
Ribbon Cuttings & Ground Breakings
27
New Members
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Economic Intel
SEPTEMBER 2010 September 2010 Montgomery Business Journal
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THE NUMBER ONE BUSINESS SOURCE FOR MONTGOMERY AND THE RIVER REGION PUBLISHER
Randall L. George EXECUTIVE EDITOR
Tina McManama MANAGING EDITOR
David Zaslawsky COPY EDITOR
Michelle Jones DESIGN
Copperwing Design PHOTOGRAPHY
Jamie Martin ON THE COVER:
Montgomery County Commission Chairman Elton N. Dean Sr., Greenville Mayor Dexter McLendon, Montgomery Area Chamber of Commerce Board of Directors Chairman Nimrod T. Frazer Jr., Prattville Mayor Jim Byard Jr. and Montgomery Mayor Todd Strange. Not pictured: Elmore County Commissioner Joe Faulk. ADVERTISING:
Robert Edmonds 334-221-7948 mbjsales @montgomerychamber.com
Montgomery Business Journal c/o Montgomery Area Chamber of Commerce Post OfďŹ ce 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 issue of 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 2, Issue 9. 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 September 2010
September 2010 Montgomery Business Journal
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EXECUTIVE EDITOR’S COLUMN The past couple of months have been rather challenging at the Chamber. Our database server crashed, and the backup lost everything entered after Feb. 8, 2010. Long story short – we have the database online and running, but we are still trying to recreate the missing data. If you made any changes on your membership, including personnel and contact information, or asked to be removed from our e-mail list, please contact Deborah Pope at dpope@montgomerychamber.com. We also could not access the website/e-mail software. The login for the site goes through the database software. This is why the Weekly Enews was missing for a month. The crash also affected online registrations. To register for events, please contact the person identified on the event web page. We apologize for the inconvenience and appreciate your patience. The Chamber has two important events coming up that you do NOT want to miss ... September 16: Diversity Summit – Explore how diversity affects value judgments in the workplace, discover how to move from tolerance to appreciation, and find out which workplace behaviors can limit success. To see the day’s events, visit www.montgomerychamber.com/diversity. November 4: Women in Business Forum Annual Gathering – Your opportunity to network, build relationships and develop leadership opportunities with other businesswomen. To register for these events, contact Heidi Ellis at 334-240-6863 or hellis@montgomerychamber.com. The Annual Total Resource Campaign (TRC) kicks off the week of September 20. This is your opportunity to grow your brand and your business with Chamber sponsorships and advertising products. I’m not allowed to disclose any pricing, but I can tell you that you can purchase 2011 Montgomery Business Journal ads at a significant discount during the TRC. If you are interested in being contacted by one of the volunteers for any of the available sponsorships or products, send me an email at mbj@montgomerychamber.com. I will make sure you are contacted during the campaign! And a word to the wise, check your servers – make sure they are up-to-date and not ancient machines, running on outdated operating systems. Believe me – you do not want to spend the rest of the year re-creating what you did the first half of the year!
Tina McManama, EXECUTIVE EDITOR VICE PRESIDENT, MARKETING AND COMMUNICATIONS MONTGOMERY AREA CHAMBER OF COMMERCE
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Montgomery Business Journal September 2010
Calendar Montgomery Area Chamber of Commerce Events
SEPTEMBER
8
10 14 16 22 23 28
60 MINUTE COFFEE Sponsored by Renaissance Montgomery Hotel & Spa at the Convention Center 8 AM @ Renaissance Montgomery Hotel & Spa at the Convention Center 201 Tallapoosa St., Montgomery Free event, exclusively for Chamber Members EGGS & ISSUES WITH SEN. JEFF SESSIONS 7:30 AM @ RSA Activity Center 201 Dexter Ave., Montgomery Registration: bking@montgomerychamber.com CHAMBER 101 Sponsored by Heartsill Payroll Professionals 8 AM @ Montgomery Area Chamber of Commerce 41 Commerce St., Montgomery Registration: dpope@montgomerychamber.com
OCTOBER
6 13 14 27
SMALL BUSINESS LOAN WORKSHOP Noon @ The Small Business Resource Center 600 South Court St., Montgomery Registration: hellis@montgomerychamber.com 60 MINUTE COFFEE Sponsored by Comala Credit Union 8 AM @ Comala Credit Union 418 Madison Ave., Montgomery. Free event, exclusively for Chamber Members MINORITY BUSINESS DEVELOPMENT NETWORKING MIXER Presenting Sponsor: Calhoun Enterprises 5 PM @ TBD Registration: hellis@montgomerychamber.com LUNCHWORKS Noon @ The Small Business Resource Center 600 South Court St., Montgomery Registration: hellis@montgomerychamber.com
DIVERSITY SUMMIT Presenting Sponsor: Alabama State University 9 AM @ Renaissance Montgomery Hotel & Spa at the Convention Center 201 Tallapoosa St., Montgomery Details and Registration: www.montgomerychamber.com/diversity
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LUNCHWORKS ETIQUETTE SERIES Noon @ The Small Business Resource Center 600 S. Court St., Montgomery Registration: hellis@montgomerychamber.com
Convention Calendar
BUSINESS AFTER HOURS Sponsored by Jackson Hospital 5 PM @ Jackson Hospital 1725 Pine St., Montgomery Free event, exclusively for Chamber Members. BUSINESS TAXATION WORKSHOP Two Sessions: 3 PM & 6 PM @ The Small Business Resource Center 600 S. Court St., Montgomery Free event, open to the public Registration: hellis@montgomerychamber.com
BUSINESS AFTER HOURS Sponsored by Lowder New Homes 5 PM @ TBD Free event, exclusively for Chamber Members
compiled by the Montgomery Area Chamber of Commerce Convention and Visitor Bureau
SEPTEMBER 7-10
Alabama Retired State Employees Association Annual Meeting
16-18
Now Generation Alliance Fellowship National Conference
19-22 29-30
Alabama Airport Conference Joint Leadership Development Conference
OCTOBER 8-10 19-20
Alabama Council for the Blind State Meeting Alabama Association of Housing Authorities Workshop September 2010 Montgomery Business Journal
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Investor Profile
DRIVEN TO SERVE Larry Puckett is president and owner of Larry Puckett Chevrolet.
Larry Puckett Chevrolet pays ‘civic rent’ by David Zaslawsky
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“You see a lot of the same faces here and if you go to a bank or a restaurant or whatever and if every time you walked in there is a new face – to me that’s unsettling,” Puckett said. “If you come to Larry Puckett Chevrolet you will see a high, high majority of the same faces you saw the last time you came.” It was difficult for the dealership to reduce charitable contributions. The company supports Alabama Shakespeare Festival, Montgomery Museum of Fine Arts, humane society, Prattville library, Autauga Foundation, YMCA, United Way and a host of other charities and organizations.“I feel like you have a certain amount of what I would call civic rent that you need to pay,” PRATTVILLE – The president and owner of Larry Puckett Chevrolet keeps a Styrofoam coffee cup on his desk as a stark reminder of the difficult times the dealership has experienced. The three numbers written on that cup represent the lowest number of vehicles sold by the dealership in one month, and speak volumes about the economic recession. Looking at those numbers reminds Larry Puckett, president and owner of the dealership, how far they’ve come. June was a good month, and Puckett hopes that signals a positive trend. It wasn’t that long ago that rumors were flying about General Motors’ survival and the prospect that dealerships could be closed. Puckett said he was forced to pull back the company’s donations to River Region charities and organizations because the dealership was in “survivor mode,” as were so many businesses two years ago. “I called all of our people together and I talked to them because they were nervous,” Puckett recalled. “My No. 1 goal is to get through this – to survive. We are all going to have to work harder for less money than we’ve ever done to get through this. “My No. 2 goal is to get through it with (everybody) here. For us to survive we have to get our expenses in line with our revenue or (people) will be gone.”
Puckett said about community service: “I think all businesspeople that have a successful business should find a way to give back either through money, time or through their employees’ involvement in civic affairs. If all the businesspeople would give their time, efforts and talents back to the community, it will make our community become a better place for all of us to live, work and raise our families.” Puckett does give back money, time and his talents to the community as the chairmanelect for the Montgomery Area Chamber of Commerce; chairman of the Prattville Airport Authority; co-chairman of the Prattville Area Chamber of Commerce’s economic development committee; and as a member of the Water Works Board of the City of Prattville.
And his customers keep coming back. That was a plus and life-saver during the recession. “Having a high percentage of repeat business is something we shoot for and we try to take care of the people after we sell them.” That’s another key for the dealership – treating customers and employees – the way you want to be treated, Puckett said. “What we want to be is if you think anything automotive – be it buying a new car or a used car; maintain your car; body shop repairs; if it pertains to cars or trucks, we want to be what people think of,” Puckett said. “We want to be good at taking care of your automobile. We are in this thing for the long term. I feel like if you are genuinely interested in buying a car, our people’s chances of handling that to a successful end for both them and the customer is very high.” •
LARRY PUCKETT CHEVROLET LOCATION
PRATTVILLE
“You have to give back,” he said. “To me that’s part of paying your civic rent. I still haven’t lost our desire to be supportive of the community, but I had to cut back a notch to be here for them to see me later.”
NUMBER OF EMPLOYEES
The economy continues to improve. More evidence of that is Puckett’s hiring of two new employees this summer – the first new hires in 2½ years.
NUMBER OF VEHICLES ON THE LOT
59
YEARS IN BUSINESS
28½
400 TO 500
Nearly all of his sales staff has worked at the dealership at least 10 years. Aside from new hires, the salesperson with the least longevity has worked there six years.
Puckett said that he asked his employees to help cut expenses, and he said he would do everything he could so every employee will have a job. He said a few employees retired and a couple moved, but he did not have to “look anybody in the eye and say, ‘I don’t need you anymore.’ ”
September 2010 Montgomery Business Journal
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EMBRACING DIFFERENCES Q&A WITH STEPHEN J. PEMBERTON Stephen J. Pemberton is chief diversity officer and vice president of diversity and inclusion at Monster Worldwide, the parent company of Monster, a leading online career property. He was recently interviewed by Montgomery Business Journal Managing Editor David Zaslawsky. Montgomery Business Journal: What are your responsibilities as chief diversity officer and vice president of diversity and inclusion at Monster?
Stephen J. Pemberton is chief diversity officer and vice president of diversity and inclusion at Monster Worldwide.
Pemberton: I have a dual role. On the one hand I’m responsible for the development of diversity and inclusion services that we provide our clients and oversee the formal business that is diversity for Monster. I am also the company’s chief diversity officer and that means I’m responsible for the internal communications, programming and development of our diversity initiatives. MBJ: How do you help other companies with diversity? Pemberton: We specifically focus on their recruitment efforts, but we are expanding to retention and diversity consulting in the latter part of this year. We have a number of services that we provide, particularly in the recruitment space. It’s not just posting jobs on Monster,
but it’s providing networking, functionality and capabilities to employers who are interested in trying to diversify their work force. We do that through posting of jobs, access to our diversity resume database, utilization of media … and our diversity leadership programs are all staples of what we’ve been delivering for the better part of five years. MBJ: Are most of the companies that you deal with interested in diversity? Pemberton: They absolutely are. I would say that the drivers are very different because I think that which was historical and perpetual really had a lot to do with corrective action righting a social wrong. I think that has been joined and at times surpassed by a new driver and that’s competitive advantage. MBJ: Would you please elaborate? Pemberton: More and more entities realize that in order for them to compete for market share and brand awareness of the traditional business drivers, they are going to need to be more attentive to the issue and impact of diversity, whether that’s driven by the constituency that they serve that’s more diverse or by a reality that they are going to need how to adapt, adjust and sell into a consumer marketplace that is more diverse. MBJ: There are numerous definitions of diversity. With the hats you wear at Monster, what does diversity mean to you? Pemberton: I think there is going to come a day where we are going to have to explain to young people why we ever defined diversity as a physical attribute or feature. The reality is that, I think diversity is far more about what you think like than what you look like. I think as a result that naturally and inherently expands who we include in that category. Diversity is not about race and gender and disability although it encompasses those things, but I think it has as much to do with your ability to adopt and adapt to new modalities of thinking, which are happening faster than they ever have. For us, we try
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to and encourage (people) to get away from physical attributes and features and think more about the way one thinks. MBJ: When you’re talking about the way one thinks, aren’t you talking about everybody? Pemberton: And isn’t that empowering. When you take a term like that, which is often and in quiet corners often meant only a small group of people – imagine the power you wield when you apply to it something that is naturally inclusive. I think as a result, it gives us all an opportunity to be participants as opposed to just a few. MBJ: What methods/types of programs can large companies implement to make their company more diversified? Pemberton: For larger companies, there are a number of things that ought to be focuses. Some of those are different – at least in my view – than where organizations have often found themselves. For so many of them, their thought processes and beliefs have been borne of this quick fix or magic bullet somewhere and because they are large all they need to do is spend some money and the resources. All of a sudden they will find
that magical goal. For large companies, whether it is utilization of a talent pool or in other cases, whether it’s simply taking advantage of their existing talent and doing a very hard assessment as to where that talent exists and where is that pipeline of talent going to go. Because they are going to go somewhere; either they are going to elevate within their own organizations or they are going to move on to others. That investment in talent development, I think is a critical staple of successful companies. Many of us when we are engaging in these initiatives – we don’t always choose wisely and I see this both in the recruitment and retention sides of diversity. We ought to hold anyone we enlist in partnership efforts to a level of accountability regarding their performance. We ought not to look at this as something that is nice to do. When we open our new store in a part of town because we think there are greater business opportunities for us as a franchise – there certainly is accountability when we do that. Companies that are successful have accountability as staples of their programs. MBJ: Are you saying that some large companies feel they should throw some resources into diversity, but they don’t
have a long-term plan – they don’t know how to get there or where they are going? Pemberton: Exactly right. I think there are a number of organizations – and borne of good intentions – it’s coming from this wonderful place of realizing that there is absolutely something that they have to do. They don’t need any more lectures from us about the importance of diversity – they understand that. It’s the “how” that’s the struggle. I think that’s important to note particularly because a lot of the resources that get pointed in that direction suggest that their problem really is one of discrimination and if we just eliminate the issue of discrimination within their organization then all of their challenges will go away. That observation falls short on several levels. I think it makes it the domain of a few as opposed to the engagement of the collective. I also think it doesn’t take a holistic view of some of the other realities we’re facing regarding talent development and future pipelines. Coming from a quick fix – we have to do something so let’s do anything and hope we’ll turn things around. There are companies that promote activities and with a hope for results are often the ones who find CONTINUED ON PAGE 12
September 2010 Montgomery Business Journal
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Third Annual Montgomery Area Chamber of Commerce
DIVERSITY SUMMIT
“MOVING FROM TOLERANCE TO APPRECIATION”
SEPTEMBER 16, 2010 RENAISSANCE MONTGOMERY HOTEL & SPA AT THE CONVENTION CENTER Registration Begins at 8:00 A.M.
9:00 A.M. UNTIL 10:15 A.M. A BETTER YOU TODAY, FOR A BETTER COMPANY TOMORROW
Presenter: Tim Lewis, Founder and CEO, TALA Professional Services
GENDER IN THE WORKPLACE – TELLING OR SHARING?
Presenter: Dr. Chris Cavanaugh, Executive Director, Pennsylvania E-Health Initiative
10:30 A.M. UNTIL 1:15 P.M. OPENING SESSION AND DIVERSITY SUMMIT LUNCHEON
Presenter: Bruce Bramlett, Director of Client Services, Global Innovations Luncheon Keynote Speaker: Stephen J. Pemberton, Vice President and Chief Diversity Officer, Monster Worldwide, Inc.
1:30 P.M. UNTIL 3:00 P.M. MAXIMIZING THE FOUR STAGES™ OF CONTRIBUTION
Presenter: Jan Thibodeau, Global Innovations
BUILDING CROSS-CULTURAL BRIDGES
Presenter: Brigadier General Teresa Djuric, Air University
GENDER IN THE WORKPLACE – TELLING OR SHARING?
Presenter: Dr. Chris Cavanaugh, Executive Director, Pennsylvania E-Health Initiative
3:15 P.M. UNTIL 4:45 P.M. HOW TO COMMUNICATE IN MULTI-GENERATIONAL ENVIRONMENTS
Presenter: Al Vivian, President and CEO, Basic Diversity, Inc.
INCREASING MARKET SHARE BY EXPANDING DIVERSITY
Presenter: Miriam Muléy, CEO, 85% Niche
UNCOVERING BIAS IN THE WORKPLACE Presenter: Mystery Guest Presenter
4:45 P.M. UNTIL 6:00 P.M. NETWORKING MIXER For details and registration, www.montgomerychamber.com/diversity.
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Montgomery Business Journal September 2010
CONTINUED FROM PAGE 11
themselves after a year or so struggling to justify and/or understand why they became engaged or involved in the first place. MBJ: Do you see the same issues with smaller companies or do they look at diversity differently? Pemberton: I think they are different. For smaller companies, diversity often times is not on their radar at all and that’s often because they are looking at diversity through the lens of corrective action – righting a social wrong and not as a critical and essential driver of competitive advantage. The small business owner who might not be tapping into the Latino market if he or she only sees the Latino market as something that is driven by corporate social responsibility and not as a new and emerging consumer market that they can aggressively pursue then it’s going to be a struggle for them to adapt and adjust – ultimately the competition will. But for them at times, the value and the impact might be lost. Part of what we need to do is talk about or anchoring our efforts around the need to look at diversity and inclusion as drivers of the efficacy of our organizations whether we are in the service sector, private sector or we sell cars or whether we are non-profit whose constituency is diverse. That’s consistent I think with the original intention of diversity and what the term means. In financial terms, diversity and diversification of one’s financial portfolio is centered on one thing, and that is minimizing your risk. A very wise financial adviser – and one really doesn’t need to be wise to realize that one of the ways to minimize risk is by increasing the number of options and not decreasing them. For us, small businesses who are successful see diversity as a way to expand and grow. MBJ: You are saying that diversity impacts a company’s bottom line.
Pemberton: That’s correct, and there is another thing they are going to miss and this to me is a critical point. They are also going to miss the future talent pool that they are trying to pull from. No. 1, they are certainly more diverse than they ever have been and they also think differently about diversity than previous generations. In our own independent research we have asked the talent that we are trying to attract and our clients are trying to attract – we asked how do you define diversity. They rarely cite anything that is related to corrective action. They say that diversity to them is about two things: one, helping organizations reach consumers that they might not be ordinarily thinking about; and the second is that it inherently expands the creative power of the organization. If organizations are not talking to that future talent pool about diversity in terms of competitive advantage then those individuals are going to take their skills, talents and abilities elsewhere. They are also very clear about something else – they know you have to recruit someone because of their skills, talents and abilities. If you put the primary focus on your recruitment activities around one’s race, gender, sexual orientation, disability, religion, geography – they will step away from you. They say, ‘if that’s the sole reason that I’m of interest to you, that’s all I will ever be in your organization; I will never be able to grow; I’ll never become a vice president or an executive because you only see me through this narrow lens.’ MBJ: How do they know that? Do they really know how they are being perceived? Pemberton: Sure. If you pick up a magazine in this space, whether it’s Diversity Executive or Black Enterprise and just look at some of the taglines that companies use when they talk about diversity. They might have a picture of one individual; they may be talking about the importance diversity has to their local community; they might talk about commitment – all of which are nice to have, but it sends a very clear signal to that individual who is looking at and (feels) it is not really part of the growth of the organization. This has more to do with righting a social wrong or corporate social responsibility. For many of them, they don’t quite see it that way. MBJ: I didn’t realize that level of sophistication was out there.
Pemberton: Remember this new transformative medium they have called the web. Imagine what individuals are doing in the course of researching careers. They are certainly looking at the diversification of senior leaders because they tell us they are. They are looking to see whether or not an organization says it’s committed to diversity and inclusion or whether it’s passionate. They are looking to see whether or not diversity is mainstreamed into the organization or whether it’s a side car. Therefore, they will make decisions and assumptions about how they will engage – extremely sophisticated. They will take the surname off their resume if they believe that it immediately identifies them as a diverse individual. Jackie will change her name on the resume to J. Smith or remove all references to gender because she wants to make certain that she is being recruited for her skills, talents and abilities. MBJ: Without giving away too many secrets, what will you be talking about as the keynote speaker at the Diversity Summit? Pemberton: I won’t be giving away too many secrets. I will be talking a lot about my own personal story and how it impacted a lot of the things I’ve shared with you and
the leadership direction that Monster has assumed on this specific topic. The pathway that I took both in growing up as a child in foster care and being of mixed race and background – it certainly has impacted the way that I view diversity. And it is not the tried and true historical perceptions and that includes any of those that suggest we are in the midst of a post-racial world. I am very hopeful that my story will perhaps reveal as why we might not necessarily be in that place, but there is a way for us to get there. MBJ: What do you mean by post-racial world? Are you saying people will not see racial differences and we are all one? Pemberton: Yes. It seems to me in the study of different languages and cultures, modalities of thinking that part of the learning that we have and the growth we have as individuals comes from an ability to engage, interact and see different points of view. This desire to either create a melting pot or suggest that one’s race, religion, country of origin and/or our identity not only doesn’t matter, but should never matter – it seems to come from a defensive mindset. I have learned so many wonderful things from other cultures and religions and I
would certainly struggle in environments where the ability to express those things are muted or tamped down. I think as a result we lose that ability to grow – grow as individuals and grow as organizations. MBJ: Aren’t you saying, you embrace all the differences and understand and learn from those differences instead of making it sound like we are all the same? Pemberton: That’s right. I think we want to do that and the driver of that … it just seems to me to be inconsistent with how we’ve grown as an organization. We grow a lot as individuals by how we encounter change and how we wrestle with it. There will always be those foundational ideals and principles that we all live and abide by. Our Founding Fathers would have certainly appreciated a world where you wouldn’t be driven simply by what someone looked like or their particular religion in those days that they came from. That’s when you get to that day – not by ignoring issues of race and/or gender or sexual orientation, but by embracing them; and determine and glean what you can learn from them. •
September 2010 Montgomery Business Journal
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Flexing its academic muscle Troy University’s Montgomery campus plans new programs for fall by David Zaslawsky
The top jobs for the accounting and financial services field next year will be tax accountants. That was the result of a survey conducted by the Robert Half Agency, which specializes in placing people in accounting and finance-related jobs. Now, couple that with a region that has grown dramatically the past five years with a Hyundai manufacturing facility, its suppliers and now a Kia manufacturing facility in West Point, Ga., on the border with Alabama. Hyundai and many of its suppliers expanded to provide parts for the Kia plant. That growth has not been lost on Troy University, whose leadership is keenly aware of a growing demand for tax accountants. “We, as an educational institution, should be able to keep up with all this progress and in particular as a business school, we should find more ways to interact with (the companies) and their immediate needs,” said Anthony Rhee, associate dean of Troy University’s Sorrell College of Business. To meet the growing needs of the community, Troy will offer new programs and talk to businesses about expanding into other areas as well. An employment skills workshop held earlier this year on the Montgomery campus attracted 50plus attendees. And the campus recently added a student chapter of the Society for Human Resources Management (SHRM).
“These students are already in the HR (human resource) field and this is a way to further enhance their skills and knowledge,” said Dennis Self, associate professor of management and chairman of the Department of Business Administration. Self said plans exist to offer professional certification workshops. This fall, the Montgomery campus will offer an intensive one-year master’s program in Human Resource Management. Classes will be offered on alternating weekends. “What triggered our thinking in this direction was that we have been very successful in the Montgomery area offering the program on weeknights,” Self said. “But one of the things we wanted to do was expand it beyond the Montgomery area. To do that we have to offer it in a way that makes it convenient for interested people – HR managers in Birmingham.” In this new program, students will have dinner Friday night and then attend class until 10 p.m. Saturday sessions start with breakfast, followed by a class, and then lunch and another class. Classes will be about 4 1⁄2 hours, Self said. The $15,000 tuition includes meals and textbooks. Rhee said the university is hoping for a class of 20 and those students will be taught as a group. “They register as a group and that group stays together all the way through the program,” Self said. “It enables them to build up a degree of
Anthony Rhee, Alan Campbell and Dennis Self
camaraderie and it enables us to offer projects that they can carry over.” The Montgomery campus also will offer a master of taxation and certificate of taxation. The master’s program requires 30 semester hours that encompass seven required courses and three electives. The certificate program is 15 semester hours. “When you get a master of taxation degree you have a lot of the knowledge that otherwise would take a long time from experience to gain,” said Alan Campbell, associate professor of accounting at Troy University’s Montgomery campus. “We are going to teach the students a lot of the core doctrines; additional doctrines and their application,” Campbell said. “We are going to give the students the foundation; how the tax laws evolved and more importantly research. We are going to teach them where to go to find answers. We are going to teach the basic principles that underlie the tax law to give them a theoretical framework.”
For information on the master’s degree program in human resource management at Troy University’s Montgomery campus, call 334-241-8614 or 334-241-9703. For information about the master of taxation program or the certificate of taxation program, call 334-241-9703 or contact Larry Hudack, chair of the Montgomery campus department of accounting, finance and law at lhudack@troy.edu
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September 2010 Montgomery Business Journal
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TEAMING UP Surrounding communities join forces to attract Hyundai Heavy Industries by David Zaslawsky
Officials from surrounding regions joined forces to bring Hyundai Heavy Industries to Montgomery. The manufacturing facility will be the company’s first in North America. From left: Montgomery County Commission Chairman Elton N. Dean Sr., Greenville Mayor Dexter McLendon, Montgomery Area Chamber of Commerce Board of Directors Chairman Nimrod T. Frazer Jr., Prattville Mayor Jim Byard Jr. and Montgomery Mayor Todd Strange. Not pictured: Elmore County Commissioner Joe Faulk.
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G
“When a company looks in the global marketplace, they have to find the United States; then they have to find the Southeast; then they have to find Alabama; then they have to find Montgomery; and then they stroll on down and they find Prattville in our case.” What is truly remarkable about Hyundai Heavy Industries (HHI) selecting Montgomery for its first manufacturing plant in North America is that the outlying communities contributed money toward an incentive package. That contribution from Prattville, Greenville and Elmore County showed a collective understanding of the role Montgomery plays in economic development in the River Region and beyond. It also showed the power communities have when they share resources for the common good. And when surrounding communities realize that what is good for Montgomery is good for the surrounding community, it may signal the end of parochialism. It may signal a new era of economic development, where there are no artificial boundaries. “More than anything else, we believe in regional economic development and we are going to have to do more of that in this nation to be able for us to survive in small towns like Greenville,” said Greenville Mayor Dexter McLendon. “This the first time Greenville has ever helped an area away outside Butler County,” he said, “but I think this is something we all need to do. Jobs are very, very difficult for us to get and to be able to get them is going to take all of us helping to make it work.” Elmore County Commissioner Joe Faulk said communities working together on economic development projects is an old idea, but one “that is really coming to the forefront. I really do believe that you will see this happen more and more. We have a wonderful opportunity here to help the whole region.” Prattville Mayor Jim Byard Jr. reiterated how important it is to work as a region. “The cliché is we compete on the football field on Friday nights, but when it comes to economic development we have to think as a region.
Prattville, Greenville and Elmore County were keenly aware that HHI’s $90 million capital investment in a manufacturing facility in the Interstate Industrial Park and the creation of 500 jobs that will benefit all the nearby communities. Some of those workers will come from Prattville; some will come from Greenville; and others will come from Elmore County. “No one person wins a project – it just doesn’t happen that way,” said Neal Wade, director of Alabama Development Office. “It is a team approach.” That team approach – that partnership – was the mantra heard during a news conference to announce HHI coming to Montgomery. One by one, state, city and county leaders talked about the collaborative effort that is bringing HHI here to build 500-ton power transformers for utilities and some manufacturers. The company will be known as Hyundai Electrical Systems Alabama Inc. “We are beginning to understand that Alabama will compete with anyone, anywhere, anytime, but it’s very difficult unless we all learn to work together,” Alabama Gov. Bob Riley said. “Anything we do can be improved and enhanced if we all work together.” Montgomery Mayor Todd Strange called on his counterparts in Greenville and Prattville as well as Elmore County to sweeten the incentive package for HHI.
HYUNDAI HEAVY INDUSTRIES AT A GLANCE NUMBER OF EMPLOYEES
24,400 DIVISIONS
ENGINE & MACHINERY, CONSTRUCTION EQUIPMENT, ELECTRO ELECTRIC SYSTEMS, OFFSHORE & ENGINEERING, SHIPBUILDING, INDUSTRIAL PLANT & ENGINEERING 2009 NEW ORDERS
$106 BILLION
2010 PROJECTED NEW ORDERS
$177 BILLION
“When he called it was an automatic ‘I want to help’ because I know he needs our help and knows this is a very strong company,” McLendon said. “My main reason for helping was my relationship and respect for Montgomery Mayor Todd Strange.” Faulk said he, too, gives a lot of credit to Strange. “Mayor Strange, coming from the chairman of the Montgomery County Commission, has really made it one of his goals to reach out to the region,” Faulk said. Strange said that it took less than three hours for Prattville, Greenville and Elmore County to agree to contribute to the incentive package for HHI. CONTINUED ON PAGE 18
September 2010 Montgomery Business Journal
17
CONTINUED FROM PAGE 17
“What that regionalism does is allow folks who live in Prattville that I represent and allows them to have an opportunity to maybe have a better job even though the company is actually located in Montgomery or Montgomery County,” Byard said. HHI’s manufacturing facility is scheduled for completion in late 2011 and production is set to begin in 2012. The company will have three buildings on its 100-acre site, which is adjacent to the former Liz Claiborne facility. HHI will have a training center, parts facility and main manufacturing plant and will most likely use 30 to 40 acres. Montgomery County Commission Chairman Elton N. Dean said he would like to thank those neighbors who “stepped up to the plate and participated – that’s what partnership is all about; that’s what teamwork is all about. When we partner and we team, no other state in this country can beat the State of Alabama.” “We have so much to offer the global business community,” said Montgomery Area
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Montgomery Business Journal September 2010
Top HHI executives joined local officials in announcing the company’s plans to build a large power transformer manufacturing facility in Montgomery during a July 16 news conference.
Chamber of Commerce Board of Directors Chairman Nimrod T. Frazer, Jr. “But it is that spirit of cooperation that continues to raise all boats in the River Region.” The company already owns 25 percent of the U.S. market for large power transformers. It has sold more than 1,000 power transformers in the U.S. since 1982. Company CEO J.S. Lee said they chose Montgomery because of the “right combination of a warm welcome and hospitality.”
“It is only the beginning. We will grow by leaps and bounds,” Lee said. “The factory will help the local economy by creating new jobs for many citizens in Montgomery and the surrounding area. “My plan and dreams as CEO of Hyundai Heavy Industries is to strengthen and consolidate Hyundai’s position as partners in this enterprise … with the establishment of this new facility here in Montgomery. •
AGING U.S. INFRASTRUCTURE PROVIDES PERFECT MARKET
COMPANY WILL GENERATE MASSIVE ECONOMIC IMPACT
by David Zaslawsky
by David Zaslawsky
Hyundai Heavy Industries will manufacture 200-plus power transformers a year at its new facility in Montgomery.
When an international company the size of Hyundai Heavy Industries announces it will build its first North American manufacturing facility in Montgomery, the economic impact is massive.
Those 500-ton power transformers will mainly be sold to utility companies. Because of the country’s aging infrastructure, there is a huge market for the massive transformers. Darren Heavner, regional sales manager for Hyundai Heavy Industries, said there are 50,000 utility power transformers that are at least 20 years old. He said the life expectancy of those power transformers are 20 to 30 years. “We are definitely tapping into that market.” That is just the U.S. market. There are also opportunities in the rest of North America as well as South America. Heavner said the power transformers range from $300,000 for a small unit to $5 million to $6 million for a large unit.
The Korean company, which is the largest shipbuilder in the world, is investing $90 million to build its 200,000-plus square-foot plant at the Interstate Industrial Park. The estimated payroll to build the facility is $21 million, according to an economic impact study. Hyundai Electrical Systems Alabama Inc., which is the name of Hyundai Heavy Industries’ company here, will have 500 employees with a minimum average wage of $18 an hour. That translates into an annual payroll that is
at least $18.7 million. Think of all the buying power of those 500 people. Because of sheer size of Hyundai Electrical Systems Alabama, which will produce 200-plus power transformers a year, about 1,000 indirect jobs will be created. It is not known how many of those jobs will be from suppliers, but also new retail and other jobs will be created serving the needs of those 500 employees and their families. It is estimated that the company will generate $33.8 million in revenue for the state and local government over a 10-year period.
September 2010 Montgomery Business Journal
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Gathering Momentum State business executives more upbeat about economy by David Zaslawsky
When Montgomery Mayor Todd Strange talks about the economy, he likes to say, “We see the light at the end of tunnel and it’s not a train.” He’s right, and that’s despite a recent spate of Dow losses, decline in consumer confidence, lackluster jobs reports, negative housing reports and debt fears in Europe. Nearly 350 business executives in Alabama support the mayor’s view – the economy is improving. For the first time in 10 quarters – that’s going all the way back to the fourth quarter of 2007 – the Alabama Business Confidence Index (ABCI) topped 50.0, which signals growth. Say goodbye to 10 straight quarters of contraction. The ABCI for the third quarter is 51.6 points, an increase of 2.1 points from the second quarter. It also marks the seventh straight quarter that the overall index improved and that is significant. The index topping 50 “provides a credible indication that a modest, but broad-based recovery is taking hold in the state,” according to the University of Alabama’s Center for Business and Economic Research, which conducts the quarterly survey. All six of the index’s components broke through the 50-point barrier and four of the six increased between 2.8 points and 4.0 points from the previous quarter. This is the first time since the third quarter of 2007 that all four metro centers – Montgomery, Mobile, Huntsville and Birmingham – and the business confidence in the state topped the 50-point mark. Huntsville survey participants were the most upbeat at 55.3 points with Montgomery second at 51.5, followed by Birmingham (50.4) and Mobile (50.1). The Montgomery respondents were optimistic about the state’s economy (55.4) and industry sales (54.5), but were forecasting very slight contractions in capital expenditures (49.7), industry sales (49.4) and profits (49.4). Another critical aspect of the third quarter index is the optimism business leaders have about the national economy. The 20
Montgomery Business Journal September 2010
ABCI QUARTERLY BREAKDOWN 2002
2003
2004
2005
2006
2007
2008
2009
2010
Q1
54
58
67
62
59
54
47
32
49
Q2
63
56
67
61
61
56
43
32
50
Q3
60
61
69
60
59
57
43
46
52
Q4
56
61
66
54
54
51
44
47
Source: University of Alabama’s Center for Business and Economic Research
survey participants are expecting the national economy to be a plus for their companies for the first time in three years. In the second quarter of last year, the national economy had tumbled to 24.7. The following is a breakdown of the third-quarter components: NATIONAL ECONOMY – The third-quarter outlook increased 3.3 points from the previous quarter to 50.3. Nearly one-third of the survey respondents expect the U.S. economy to improve in the quarter and more than one-third expect no change from the second quarter. About 25 percent anticipate a somewhat worse quarter. One year ago, nearly 9 percent expected a much worse quarter compared to just 3.5 percent this quarter. ALABAMA ECONOMY – With a 2.8-point increase from the previous quarter, this component is now at 52.6 and is ranked second to industry sales of all the individual components. About 75 percent of the survey participants anticipate the third quarter improving or remaining the same. Nearly 25 percent expect a somewhat worse quarter. INDUSTRY SALES – Although this component topped all others at 55.9 points, it declined 0.5 points from the second quarter. By a more than two-to-one margin (43.8 vs. 19.7), business leaders see sales improving in the quarter compared with those who expect sales to decline. About one-third expect sales to remain the same. The sectors expecting strong sales growth are finance, insurance, real estate, other services and retail trade. The health care sector was the only one expecting to see a decline in third-quarter sales.
INDUSTRY PROFITS – The component’s 50.5 points was the same as the second quarter, but more than one-third of the respondents have a positive outlook for the third quarter while about 28 percent expect profits to decrease. Nearly 37 percent are forecasting profits to remain the same as the previous quarter. The most upbeat sectors are finance, insurance and real estate. The sectors anticipating a negative quarter are health care, construction and wholesale trade. INDUSTRY HIRING – This component increased 3.1 points from the previous quarter and now sits in positive territory at 50.4 points. About 60 percent expect to see no change in the quarter, but almost 25 percent expect hiring to increase compared with 18 percent who expect a decline. Manufacturers are expecting strong hiring gains this quarter while construction and health care sectors expect job losses. Finance, insurance, real estate, transportation, information and utilities are forecasting little or no job growth. INDUSTRY CAPITAL EXPENDITURES – This component increased the most of any – gaining 4.0 points to 50.1. Almost 26 percent of the respondents expect an increase in capital spending this quarter compared with about 20 percent who expect a decline. That’s the first time since the first quarter in 2008 that more panelists were positive than negative. Nearly 54 percent are expecting no change from the previous quarter. Manufacturing and wholesale trade could see the greatest spending increases in the quarter while spending is expected to decline in the construction, health care, professional, scientific and technical sectors. •
Member News
BUSINESSBUZZ KOWA PHARMACEUTICALS AMERICA, ELI LILLY ANNOUNCE AVAILABILITY OF NEW MEDICATION Montgomery-based Kowa Pharmaceuticals America and Eli Lilly announced that Livalo tablets are now available in retail pharmacies throughout the country. Livalo, a statin medication approved by the FDA in August 2009, is for adults as an adjunctive therapy to diet for the treatment of primary hyperlipidemia or mixed dyslipidemia. It was approved on the basis of 10 clinical trials, including five 12-week clinical trials.
had to swab each bag to screen it for explosives. The new machine is fully automated, eliminating the need to swab each bag and reducing the number of bags that have to be opened. “Our No. 1 goal is passenger safety and we welcome the addition of the most up-to-date TSA screening equipment,” said Phil Perry, executive director of the Montgomery Regional Airport. “Passenger traffic for Montgomery Regional Airport is growing at a brisk pace and this new equipment has the capacity to accommodate additional growth in the future.”
multi-level training and certification program developed and administered by the Radio Advertising Bureau. RMP graduates must complete a rigorous course of study that focuses on mastering the knowledge and skills necessary to help local businesses maximize their advertising success. To earn their RMP diploma, candidates must pass a challenging onehour written examination. Bluewater Broadcasting owns and operates, WBAM, Bama Country 98.9, WJWZ, 97.9 Jamz, WQKS, Q96.1 … the Greatest Hits of All Time, WMRK, News Talk 107.9, and WACV, Goodtime Oldies 1170 AM and 104.9 FM.
“It is an honor to lead AAJ at a time when the importance of the civil justice system has never been more obvious,” Vance said. “As president, I will continue AAJ’s efforts to strengthen the civil justice system and ensure all Americans can get justice, even when taking on the most powerful interests.”
MONTGOMERY - WSFA 12 News continues to grow news viewership, doubling the total number of viewers of the four other broadcast stations combined at 5 a.m., 6 a.m., 5 p.m., 6 p.m. and 10 p.m. in the May rating period.
TSA UNVEILS NEW DETECTION SYSTEM AT MONTGOMERY REGIONAL AIRPORT
Through CT scan technology and sophisticated algorithms, explosives detection system machines can quickly determine if a bag contains a potential threat. Prior to the deployment of this equipment, TSA officers
Vance has practiced law for 17-plus years and is currently a shareholder with Beasley, Allen, Crow, Methvin, Portis & Miles, P.C. in Montgomery, specializing in personal injury litigation and consumer fraud cases.
WSFA 12 NEWS TOPS IN THE RIVER REGION
Kowa Pharmaceuticals America is located at Montgomery Industrial Park.
MONTGOMERY – The Transportation Security Administration (TSA) announced the use of a new explosives detection system (EDS) machine for screening checked baggage at Montgomery Regional Airport.
ensuring individuals are treated fairly in the legal system.
Jim Morroe
BLUEWATER BROADCASTING ACCOUNT EXECUTIVE RECEIVES PRESTIGOUS DESIGNATION MONTGOMERY – Bluewater Broadcasting account executive Jim Morroe has successfully met the requirements to earn the designation of Radio Marketing Professional (RMP). The (RMP) designation is the first step in a comprehensive,
C. Gibson Vance
BEASLEY ALLEN SHAREHOLDER NAMED PRESIDENT OF NATIONAL JUSTICE GROUP WASHINGTON, D.C. - C. Gibson Vance was named president of the American Association for Justice (AAJ) at the organization’s annual convention. Vance will spearhead AAJ’s mission of
WSFA news viewership grew the most in the morning, according to the Nielsen rating service. At 5 a.m. 29,000 viewers watched WSFA 12 News compared to the combined viewership of 5,000 viewers for CBS8, ABC32, FOX20, and Montgomery’s CW. The WSFA 12 News audience increased to 37,000 viewers at 5:30 a.m. (CONTINUED ON PAGE 22)
September 2010 Montgomery Business Journal
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BUSINESS BUZZ (CONTINUED FROM PAGE 21) and 57,000 at 6 a.m., compared to 7,000 for the other four stations combined at 5:30 a.m. and 14,000 viewers at 6 a.m. WSFA 12 News attracted 62,000 viewers at 5 p.m., 74,000 at 6 p.m. and 65,000 at 10 p.m. The other four broadcast stations attracted a total of 30,000 viewers at 5 p.m. and 10 p.m. and 29,000 at 6 p.m. Additionally, WSFA.com attracts nearly 400,000 unique users and 2.6 million page views each month, and WSFA 12 On Your Cell serves 50,000plus unique users monthly. GREENSBORO RECREATIONAL DEPARTMENT RECEIVES Wii GAMING SYSTEM MONTGOMERY - The Beasley Allen law firm presented Wii gaming systems to the City of Greensboro’s Recreational Department and Barbour County High School. The Wii helps people of all ages to improve their physical fitness by combining engaging video games with physical motion using a unique handheld controller. The Wii is a central part of a pilot program in Alabama called the Wee Can Fight Obesity Partnership, which aims to fight childhood obesity. Greensboro plans to use the Wii at its recently renovated recreational center, which is open to all for activities and events. “We are excited to incorporate the Wii, which is something that the young people in our community are excited about, into our program at the Greensboro Recreational Center (GRC),” Greensboro Mayor Johnnie B. Washington said. “The active nature of the games you can play on the Wii encourages kids to move around and get some exercise, but in a fun way. They enjoy playing a video game without even realizing they’re also getting a workout.”
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STANDARD ROOFING CO. AWARDED CONTRACTS TOTALING $11 MILLION-PLUS MONTGOMERY – Standard Roofing Co. has announced contracts that total more than $11 million. One of those contracts is for the roof on the former judicial building on Dexter Avenue that the Retirement Systems of Alabama (RSA) is turning into an office building. The new roof will include one of the Alabama’s first garden-roof systems, in keeping with the owner’s green initiative and LEED certification program. Standard Roofing Co. has installed new roofs on seven RSA buildings. In another development, Standard/Taylor Industries Inc., the parent company of Standard Roofing Co., recently captured first place in Manufacture Alabama’s annual Safety Achievement Program. The 2010 designation marks the fourth year out of the last six that the company has placed first.
in school counseling and community counseling. The accreditation was awarded by the Council for Accreditation of Counseling and Related Educational Programs (CACREP). AUM is one of only a handful of programs in the state to receive the designation. “Our faculty worked tirelessly to attain this nationally recognized level of academic excellence,” said Rhonda Morton, head of the Department of Counselor, Leadership and Special Education. “This is merely the latest step in a program that has upheld a long tradition of outstanding instruction, scholarship and service to the community.”
KNOLOGY COLLECTED SUPPLIES THROUGH ‘SKOOL RULEZ’ PROGRAM MONTGOMERY – Knology partnered with the Outdoor Channel to collect school supplies as part of its “Skool Rulez” initiative. Knology, a leading provider of interactive communications and entertainment services, collected school supplies in July. “During these harsh economic times, more families are in need of assistance,” said Beverly Wall, sales and marketing manager for Knology in Montgomery. “Through our Skool Rulez initiative, we will be able to provide school supplies to area students where it will make a difference.”
Edward V. Welch Jr. Jack Hawkins
WELCH HORNSBY & WELCH RETURNS TO DOWNTOWN MONTGOMERY
Rhonda Morton, head of the Department of Counselor, Leadership and Special Education (left), and Jennifer Brown, Dean of the School of Education, received a certificate of accreditation for the master’s degree programs in school counseling and community counseling from the Council for Accreditation of Counseling and Related Educational Programs.
AUBURN MONTGOMERY’S COUNSELOR EDUCATION PROGRAM RECEIVES NATIONAL ACCREDITATION MONTGOMERY - Auburn University at Montgomery’s School of Education has earned national accreditation for master’s degree programs
Montgomery Business Journal September 2010
MONTGOMERY - Welch Hornsby & Welch announced that the firm has returned to downtown Montgomery where the company was established in 1988. The firm moved into One Commerce Street, Suite 800. Extensive renovations have been made to the top floor of the One Commerce building by the Montgomery architectural firm of Godwin Jones Architecture and Interior Design. “It is exciting to see the revitalization that is taking place downtown and we are delighted to be a part of it,” said Edward V. Welch Jr., president and CEO of Welch Hornsby & Welch.
TROY UNIVERSITY INCREASES ADMISSIONS STANDARDS TROY – Troy University trustees raised admissions standards for entering undergraduates for the second time in four years. The vote raises the minimum ACT test score by one point beginning fall 2011 to 20 for unconditional admission, and increases the range for conditional admissions to 17–19 on the ACT. For those taking the SAT, the minimum admission score would be a 950, and conditional admissions would be 830-940. The new standards also require any transfer student to have a minimum 2.0 gradepoint-average and raise the ACT/SAT examination exemption from 21 to 25 years of age.
BUSINESS BUZZ The changes are aimed at admitting better prepared students, and improving their chances for success at the university, according to Troy University Chancellor Jack Hawkins. “We have improved our facilities and support structures through the years,” he said. “We must continue our quest for quality in the academic arena. Simply, quality begins with students prepared for a university setting.” ORGANIZATION HONORS STARKE AGENCY PRESIDENT MONTGOMERY – Starke Agency Inc. President Trey Starke was recently recognized for professional leadership and advanced knowledge by the Society of Certified Insurance Counselors (CIC).
conduct scenario-based training on life-like patient simulators that incorporate vocalization, color, sound and motion to recreate human illness and response to treatment.
Trey Starke
Cynthia Dixon
Starke was awarded a certificate marking more than 15 years of participation as a designated CIC, which requires annual completion of advanced education and training.
JACKSON HOSPITAL UNVEILS EDUCATION CENTER
“Trey Starke’s ongoing allegiance and support of the CIC Program is a testament to the value he places on ‘real world’ education and customer satisfaction,” said William T. Hold, president of the Society of CIC.
The new education center is home to a simulation laboratory that includes five state-of-the-art patient simulation mannequins offering nursing and other clinical staff members a handson learning environment. The mannequins are used to
MONTGOMERY – The Jackson Hospital Education Center recently opened in the South Building.
“The patient simulators allow clinicians to enhance and grow their skills in a safe, controlled environment,” said Cynthia Dixon, vice president of patient care services at Jackson Hospital. “We’re so proud to be able to offer this level of training to our staff as well as local college students, EMS and others from the community.” PUBLISHING ORGANIZATION WELCOMES PRIME MONTGOMERY MONTGOMERY - Prime Montgomery, a monthly magazine for midlife and beyond, has been accepted as a member (CONTINUED ON PAGE 24)
September 2010 Montgomery Business Journal
23
BUSINESS BUZZ (CONTINUED FROM PAGE 23) of the North American Mature Publishers Association (NAMPA). This prestigious organization represents an international cadre of professionals whose publications focus on the 50-plus market, with member magazines read by millions of people across the U.S. and Canada. Membership in NAMPA is by invitation only, and selected publications must be voted on by the board of directors. UAB HEALTH CENTER MONTGOMERY RECEIVES GRANT MONTGOMERY - The UAB Health Center Montgomery has been awarded a grant by the Caring Foundation of Blue Cross/Blue Shield of Alabama. The funds will be used primarily to continue “Grand Rounds in Medicine,” a weekly lecture
24
session which provides members of the medical community up-to-date knowledge of new developments in medicine and processes to enhance the delivery of efficient high-quality health care. Other educational programs include faculty development seminars and regional educational conferences for physicians and allied health care professionals in the River Region. WILLIAM E. BARRANCO APPOINTED TO BOARD OF DIRECTORS FOR CHILDREN’S HARBOR MONTGOMERY – William “Bill” E. Barranco has recently been appointed to the board of directors for Children’s Harbor. Children’s Harbor is a non-profit organization, which provides free counseling and support
Montgomery Business Journal September 2010
William Barranco
Taylor Blackwell
services to children with chronic illnesses and their families.
that it has been named “agency of record” by Guardian Credit Union.
Barranco has been employed with WilsonPriceBarrancoB lankenship&Billingsley, PC since 1972. He has more than 38 years experience in public accounting and is now a senior shareholder and a member of the firm’s board of directors. GUARDIAN CREDIT UNION NAMES WALKER360 ‘AGENCY OF RECORD’ MONTGOMERY - Montgomery’s Walker360 has announced
“We’re very pleased and excited to be working with a financial institution that has such a rich tradition and history of serving our state’s Guard members,” say Taylor Blackwell, president of Walker360. Walker360 is a printing and advertising company that offers a range of services. Guardian Credit Union has numerous employee groups
BUSINESS BUZZ as well as 15,500 members in Central Alabama. ADVERTISING GROUP HOLDS CONFERENCE IN MONTGOMERY MONTGOMERY – More than 80 advertising professionals attended the American Advertising Federation District 7’s Annual Leadership Conference at the Renaissance Montgomery Hotel & Spa at the Convention Center. Activities included professional development speakers, club development workshops, a “Taste of Montgomery” event and the district’s annual “Mouth of the South” competition. Local experts representing LWT Communications, Hyundai Motor Manufacturing Alabama, Cunningham Group, and Square Root Interactive conducted workshops.
WHITNEY BANK PLANS TO ADD 50 JOBS TO PRATTVILLE LOCATIONS PRATTVILLE - Whitney National Bank officers and local leaders announced that a call center will open at the McQueen Smith Crossing office. The Whitney Bank Call Center site on the corner of McQueen Smith and Cobbs Ford roads will provide 34 new jobs to the River Region over the next two years. The call center is expected to be operational by early September. Whitney also anticipates announcing the addition of 16 new jobs to its downtown location later this year. Whitney Chairman and CEO John C. Hope III said this newest addition is another sign of Whitney’s commitment to Alabama. “We’re adding this site with the future in mind,” he said. “The McQueen
Smith Office in Prattville offers room to grow and provides the bank with an attractive location for this call center.” ROSA PARKS MUSEUM SCHEDULES KING, GANDHI, IKEDA EXHIBIT MONTGOMERY - An exhibit exploring the philosophies of Mohandas Gandhi, Martin Luther King Jr. and Daisaku Ikeda will be on display at Troy University’s Rosa Parks Museum starting in September. “Gandhi, King, Ikeda: A Legacy of Building Peace” explores the lives of three men from three different cultures and continents whose ideas about peace led to social changes within their own communities and around the world. The exhibit will be on display from Sept. 1 through Oct. 31.
There will be a Peace Flag Children’s Workshop on Oct. 2. At this workshop children will make Tibetan Peace flags that will then be displayed at the Rosa Parks Museum. This event is free and open to the public, but call (334) 241-8701 to register and for information. The exhibit hall at the Rosa Parks Museum is free and open to the public from 9 a.m.-5 p.m. Monday-Friday and 9 a.m.-3 p.m. Saturday. To submit your business news for publication, email a press release to editor@montgomerychamber.com. Montgomery Area Chamber of Commerce Members only.
September 2010 Montgomery Business Journal
25
MEMBERS ON THE MOVE STARKE AGENCY ANNOUNCES NEW HIRES
Lisa Flowers
MONTGOMERY - Starke Agency Inc. recently announced the addition of Lisa Flowers as marketing director and Trip Strickland as a risk consultant.
Flowers will be responsible for overseeing the marketing of new and Trip Strickland renewal commercial insurance accounts when Larry Elliott, vice president of marketing, retires. She has 14-plus years of experience in the insurance marketing field, and comes to Starke from Birmingham-based Cobbs, Allen, and Hall, a large insurance brokerage firm. Strickland will be responsible for helping businesses and individuals design insurance programs. Prior to joining Starke, Strickland received a bachelor’s degree in business administration with a major in finance from Auburn University.
“I am confident that the addition of Ty to our firm’s already strong team of dedicated employees will further enhance our ability to serve our clients’ needs.” WILSONPRICE PROMOTES SIX
Michelle Parks
Lisa Sawyer
Michelle Parks and Jon Chancey were promoted to principal. Parks joined the firm in 2003 and is a certified public accountant, certified valuation analyst and accredited in business valuations. She specializes in performing business valuations for individuals and business clients.
Anna Wilson
Chancey joined the firm in 2000 and is a certified public accountant. He specializes in audit and tax work for both individual and business clients.
Jon Chancey
Starke Agency Inc. is an insurance brokerage and risk management company. TYSON JOINS MERCHANT CAPITAL MONTGOMERY - Merchant Capital announced the expansion of the firm’s investment banking Fred Tyson Jr. and sales capabilities with the addition of Fred W. “Ty” Tyson Jr. Tyson is a graduate of the University of Alabama, where he received a bachelor’s degree in commerce and business administration with a major in finance. He will provide analytical support for the firm’s governmental and corporate financing activities, and be involved in the sales of municipal bond issues. “Merchant Capital remains focused on growing its core businesses of municipal and corporate finance,” said Merchant Capital Chairman Thomas Ashley Harris.
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Montgomery Business Journal September 2010
MONTGOMERY – WilsonPriceBarr ancoBlankenship& Billingsley recently announced a number of promotions.
Anna Goldman
Lisa Sawyer and Anna Wilson were promoted to manager. Sawyer, who joined the firm in 2005 and is a certified public accountant, specializes in planning and conducting audits for clients in a wide range of industries.
Wilson, a member of the firm’s tax group, joined the firm in 2004 and is a certified public Adam Finesilver accountant. She specializes in preparing tax returns for individuals and business clients.
Anna Goldman and Adam Finesilver were promoted to senior staff accountant. Goldman specializes in audits for governmental and not-for profit organizations. She joined the firm in 2007 and is a certified public accountant. Finesilver, a certified public accountant, joined the firm in 2007. He is a member of the firm’s tax group and specializes in preparing tax returns for individuals and business clients. BANKTRUST ANNOUNCES TWO PROMOTIONS, HIRE
Paige Clayton
Melissa Britton
Heather Williams
MONTGOMERY - BankTrust recently promoted two employees and hired another. Paige Clayton has been promoted to assistant vice president and branch manager. She leads the retail sales and operations efforts at the Taylor Road office in Montgomery. Clayton, who joined the bank in 2008 as branch manager, has 16-plus years experience in banking/retail management.
Melissa Britton, who joined the bank in 2006 as a financial services representative, has been promoted to officer and assistant branch manager. Britton assists the retail sales and operations efforts at the Taylor Road office. She has more than 10 years experience in the industry. Heather Williams has joined the bank as a financial adviser. She has more than 12 years experience in the financial services and investment industry and extensive experience counseling clients on portfolio construction, retirement issues, education planning and asset protection strategies.
LOCAL RESIDENT NAMED COTTON STATES FINANCIAL REPRESENTATIVE
guiding agents toward successfully setting and achieving goals. GOODWYN, MILLS AND CAWOOD HIRE EMPLOYEE FOR SOUTH CAROLINA OFFICE
Ken Bishop of Montgomery has been named a financial representative for Cotton States Insurance. Bishop recently completed the organization’s Country Agency Learning School, which is designed to help agents expand their knowledge of products, systems
MONTGOMERY - Goodwyn, Mills Mary Catherine Price and Cawood Inc. announced a new employee for the firm’s municipal engineering department.
and sales. The training also focuses on enhancing communication skills and
New Members Airport Shuttle and Transportation Service CONCIERGE SERVICES, INC. P.O. Box 971 Montgomery, AL 36101-0971 334-538-6383
Associations/Non-Profit DEPARTMENT OF VETERANS AFFAIRS 603 Interstate Park Drive Montgomery, AL 36109 334-396-1986 Ext 21 MID-SOUTH RC&D COUNCIL, INC. 5900 Carmichael Place Montgomery, AL 36117 334-244-6903
Automobile Repair Services TECH TO U AUTO TECHNICIAN 674 Lakepointe Drive Mathews, AL 36052 334-467-1920
Engineers-Electrical MILLS-CONOLY ENGINEERING, P.C. 8218 Old Federal Road Montgomery, AL 36117 334-270-0010
Financial Services BLACK SWAN FINANCIAL GROUP 1337 Beaumont Drive Montgomery, AL 36111 334-467-0773
Legal Services - Attorneys TIERNAN W./LUCK, III, L.L.C. 621 South Hull Street Montgomery, AL 36104-5807 334-263-1100
Media Company
Mary Catherine Price is being groomed for an engineering position in firm’s Greenville, S.C. location. Price is a graduate of the University of Alabama-Birmingham and received a master’s degree in environmental engineering from the University of Tennessee. Currently, Price assists project managers with all aspects of municipal engineering design and project administration as she prepares for her relocation to South Carolina in January 2011. •
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AL.COM 2901 2nd Avenue South, Suite 260 Birmingham, AL 35233 205-380-2430
Publications MONTGOMERY LIVING MAGAZINE 1430 I-85 Parkway, Suite 228 Montgomery, AL 36106 334-265-0066
Restaurants - Bar/Grill BAUMHOWER’S RESTAURANT DOWNTOWN 201 South Union Street Montgomery, AL 36104 334-263-8800
CONNECT TO CATERING.COM 1249 Chadwick Lane Montgomery, AL 36117 334-799-4902 Chris Brock-Owner Catering Services
Restaurants Ice Cream/Frozen Yogurt CALIFORNIA YOGURT KRAZE 3010 Zelda Road Montgomery, AL 36106 334-356-3716
Restaurants - Japanese SUSHI YAMA 2070 Eastern Boulevard Montgomery, AL 36117 334-612-7800
MAGGIE STREET COMMUNITY DEVELOPMENT CORPORATION
642 Maggie Street, Montgomery, AL 36106 334-221-8692 Derrick Dean-President, Board of Directors Associations/Non-Profit
Tradeshow Exhibits EXPODISPLAYS 3401 Mary Taylor Road Birmingham, AL 35235 205-439-8206 T.U. ENTERPRISES
715 Whitehall Parkway Montgomery, AL 36109 334-462-6828 Thaddeus Porter-CEO Telecommunications
September 2010 Montgomery Business Journal
27
ECONOMIC INTEL
Sales Tax Collections JUL 2010
JUL 2009
$3,171,968
$3,209,284
$7,326,388
Pike Road Autauga County
Year over Year % Change
YTD 2010
YTD 2009
-1.16%
$19,482,896
$22,614,932
-13.85%
$7,294,849
0.43%
$44,095,543
$50,258,473
-12.26%
$148,330
$159,186
-6.82%
$969,486
$755,136
28.39%
$609,966
$592,087
3.02%
$3,599,396
$4,241,070
-15.13%
$1,313,426
$1,131,065
16.12%
$7,179,739
$8,118,272
-11.56%
Elmore County
$767,393
$720,382
6.53%
$4,432,405
$4,964,980
-10.73%
Wetumpka
$447,957
$472,377
-5.17%
$2,692,159
$3,275,878
-17.82%
Millbrook
$464,744
$449,935
3.29%
$2,744,727
$2,987,511
-8.13%
Montgomery County City of Montgomery
Prattville
Sources: Montgomery County Commission, City of Montgomery,
28
Year over Year % Change
Montgomery Business Journal September 2010
Montgomery Regional Airport JUL 2010
JUL 2009
Year over Year % Change
YTD 2010
YTD 2009
Year over Year % Change
Air Carrier Operations
1,098
1,036
6.0%
7,247
6,501
11.5%
Total Operations
5,981
5,356
11.7%
41,476
40,251
3.0%
Enplanements
17,784
16,246
9.5%
107,455
87,647
22.6%
Deplanements
17,875
16,596
7.7%
107,988
89,260
21.0%
Total Passengers
35,659
32,842
8.6%
215,443
176,907
21.8%
Source: Montgomery Regional Airport (MGM) Dannelly Field
Montgomery Metro Market Home Sales JUN 2010
MAY 2010
Month/Month % Change
JUN 2009
Year/Year % Change
Statewide MAY 2010
376
390
-3.59%
360
4.44%
4,045
Median Selling Price
$130,000
$129,900
0.08%
$134,500
-3.35%
$131,242
Average Selling Price
$148,453
$149,729
-0.85%
$154,226
-3.74%
$153,833
82
87
-5.75%
92
-10.87%
143
3,364
3,266
3.00%
3,148
6.86%
42,675
Total Home Sales
Average Days on Market Total Homes Listed
Source: Alabama Center for Real Estate (ACRE), The University of Alabama
Quarterly Reports QUARTERLY REVENUES
NET INCOME
EARNINGS PER SHARE
EARNINGS ESTIMATE
YEAR-AGO REVENUES
YEAR-AGO NET INCOME
Marriott International
$2.8B
$119M
$0.31
$0.28
$2.6B
$37M
Quarterly profit tripled
Yum Brands (Pizza Hut, KFC, Taco Bell)
$2.6B
$286M
$0.59
$0.55
$2.5B
$303M
Operating profit jumped 33% in China
N/A
$4M
$0.73
N/A
N/A
$1.6M
Profit surged 158%
$2.1B
$181.7M
$1.64
$1.65
N/A
$158M
Profit increased 15 percent
N/A
$210M
$0.30
$0.33
N/A
$121M
Profit climbed 70%
$2.7B
(-$18.7M)
(-$0.07)
(-$0.17)
$2.8B
(-$82.6M)
Domino’s Pizza
$362.4M
$22.6M
$0.37
$0.28
$316.6M
$14.5M
Profit rose 55%
Papa John’s
$280.6M
$13.2M
$0.49
$0.43
$268.5M
$14.2M
Revenue increased 5%
$436M
$1.7M
$0.07
$0.02
$284.4M
$1.5M
Profit jumped 85%
$255.2M
$15M
$0.21
$0.21
$242.4M
$13.7M
Revenue rose 5%
$2.6B
$207.9M
$0.27
$0.29
$2.4B
$151.9M
Comparable store sales increased 9%
$6B
$1.2B
$1.13
$1.12
$5.7B
$1.1B
Same-store sales worldwide up 4.8%
NAME
ServisFirst Bancshares Sherwin-Williams BB&T Office Depot
hhgregg Texas Roadhouse Starbucks McDonald’s
NOTABLE
Revenue declined 4%
September 2010 Montgomery Business Journal
29
Airline Fares Roundtrip airfare comparisons from Montgomery, Birmingham and Atlanta airports to key destinations.
Destination
National Retail Sales (Monthly and Quarterly)
Wal-Mart
Year
May
2010
-1.4%
June
2009 Target Sam’s Club
Family Dollar
Best Buy JCPenney Kohl’s Gap Rite Aid Walgreens AutoZone McDonald’s Burger King Wendy’s Arby’s
Atlanta
Baltimore (BWI)
$284
$204
$174
Boston (BOS)
$272
$246
$211
Charlotte, NC (CLT)
$154
$154
$142
Chicago (ORD)
$368
$254
$224
Cincinnati (CVG)
$244
$202
$178
Dallas/Ft Worth (QDF)
$238
$218
$264
+1.3%
+1.7%
Denver (DEN)
$380
$299
$294
2009
-6.1%
-6.2%
Detroit (DTW)
$342
$248
$214
2010
-0.7%
Houston (QHO)
$318
$218
$274
Indianapolis (IND)
$284
$201
$170
Las Vegas (LAS)
$380
$323
$318
+7.0%
Los Angeles (LAX)
$323
$240
$321
+6.2%
Memphis (MEM)
$340
$296
$190
Miami (MIA)
$202
$197
$148
Nashville (BNA)
$238
$138
$220
New Orleans (MSY)
$278
$158
$164
New York (JFK)
$342
$248
$237
2010
+5%
+1%
2009
-1%
-1%
2010 2009
Dollar General
Birmingham
2010
2009 Costco
Montgomery
2010
+6.7%
2009
+13.3%
2010
+2.8%
2009
-6.2%
2010
-1.8%
+4.5%
2009
-8.2%
-8.2%
Orlando (MCO)
$272
$172
$162
2010
+3.5%
+5.9%
Philadelphia (PHL)
$326
$258
$274
2009
-0.4%
-5.6%
Pittsburgh (PIT)
$284
$232
$182
2010
-2%
-3%
St Louis (STL)
$240
$158
$214
2009
-11%
-10%
2010
-1.7%
-2.5%
Seattle (SEA)
$397
$328
$284
2009
+0.6%
-0.6%
$1,572
$1,096
$932
2010
-0.2%
+2.0%
Tampa (TPA)
$286
$206
$178
2009
+1.0%
+3.4%
Washington DC (DCA)
$314
$234
$218
2010
+7.1%
2009
+7.4%
2010
+3.4%
2009
+2.8%
2010
-6.1%
VEHICLE
JULY 2010
JULY 2009
YTD 2010
YTD 2009
2009
+1.6%
Accent
3,960
7,634
31,038
40,562
2010
+0.8%
Sonata
17,836
13,381
107,085
73,862
2009
+1.0%
Elantra
18,215
13,616
75,779
53,520
2010
-11.5%
Tiburon
0
151
0
8,497
2009
-8.7%
Santa Fe
7,047
6,793
51,423
40,266
218
306
1,799
2,257
3,698
1,106
23,387
8,658
0
32
0
3,375
U.S. same store sales compiled from 10-Q and 10-K forms (excluding fuel sales) Source: RetailerDaily.com
Seoul, Korea (SEL)
Date of travel: Sept. 14-19. Date of pricing: Aug. 8. Source: travelocity.com
Hyundai Sales
Azera Tucson Entourage Veracruz
823
519
4,177
7,289
Genesis
2,309
2,015
15,200
11,953
Total
54,106
45,553
309,888
250,239
Source: Hyundai Motor America
30
Montgomery Business Journal September 2010
September 2010 Montgomery Business Journal
31
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