Keeping you informed and inspired. VOLUME 1 • ISSUE 4
October 2018
TRANSPORTATION
COVER STORY
Silver Airways Taking Flight at Huntsville International Airport
OH, THE HORROR!
Cashing in on the Business of Zombies, Superheros, Mystical Creatures, & Severed Heads.
Silver Airways has joined the ranks of air carriers at Huntsville International Airport and will bring another option for travelers to Florida.
Bud McLaughlin • Page 3
RETAIL
Stovehouse Helps Heat Up a New Westside
Page 8
Proving something old can have a fresh start is happening behind the brick walls topped by a large red “STOVEHOUSE” sign along Governors Drive just west of Campus 805. By the end of the year, restaurants and retail boutiques will be open there. Wendy Reeves • Page 10
ADDITIONAL STORIES • Sierra Nevada Expanding Huntsville Footprint by Kimberly Ballard • P5 • HudsonAlpha Investigator on Forefront in Addressing Rare Diseases by Wendy Reeves • P7
• REI Co-Op’s First Alabama Store to Join MidCity Huntsville Lineup by Bud McLaughlin • P11
• Every Vote - and Penny - Counts in Political Advertising by Lori J. Connors • P12
Online
Huntsvillebusinessjournal.com
HUNTSVILLE BUSINESS JOURNAL
Vol 1, Issue 4 October 2018
600 Boulevard South Suite 104 Huntsville, AL 35802
@HsvBizJournal https://www.facebook.com/huntsvillebusinessjournal
2
Huntsville BUSINESS JOURNAL
FROM THE EDITOR’S DESK
TAILGATING for a CAUSE with TASTE OF HUNTSVILLE Just about all of us have been tailgating at one time or another. In fact, it’s practically mandatory in this football-crazed part of the country. Well, here’s a chance to go to one of the most delicious tailgates ever. Yes. E-V-E-R! The Huntsville-Madison County Hospitality Association is hosting the 43rd annual Taste of Huntsville, which features food and beverages from more than 30 of the area’s restaurants. Proceeds from this year’s event will benefit the Downtown Rescue Mission and the Harris Home for Children. Proclaimed “Huntsville’s Premier Event,” this year’s Taste is entitled “Tailgate with the Taste of Huntsville.” It will be on Oct. 2 from 5:30-8 p.m. in the Von Braun Center South Hall. For information, visit www.tasteofhsv.org. “Tailgate with the Taste” provides a touchdown for your taste buds while food and beverage participants compete for awards in presentation and taste. And, what makes this one of the most delicious tailgates ever is due to the diversity of food that will be available – and all for the one charge. This year’s roster includes AM Booth’s
Lumberyard, Baby Bites Bake Shop, Buffalo Rock, Chuy’s Tex-Mex, Connors Steak & Seafood, Dickie’s BBQ, Domino’s Pizza, Drake’s, Grille 29, Hopper’s Bar and Grill, Huntsville Coca-Cola/ Redi to Serve, Huntsville Marriott at Space & Rocket Center, Jim ‘N Nick’s Community Bar-B-Q, Landry’s Seafood Huntsville, Local Taco, Maki Fresh, New Market BBQ, Nothing But Noodles, Outback Steakhouse, Rick’s Barbecue & Catering, Supreme Beverage Co., Terry’s Pizza, Texas de Brazil, The R Restaurant at Embassy Suites, Topgolf Huntsville, University of North Alabama, Urban Cookhouse, Von Braun Center and Westin Huntsville. The area restaurants “will leave it all on the field with their best offerings,” said Jessica Knox, the chair of Taste of Huntsville. While the food and drink are obviously the main draw, the two nonprofits that will benefit are most worthy, as well. “We are honored to be part of this event,” said Keith Overholt, president/ CEO of the Downtown Rescue Mission. He said his organization which, like the Taste, is in its 43rd year, will serve some 320,000 meals this year.
One of the programs offered at the Mission is a year-long recovery program that, according to Overholt, “has a success rate of 74 percent.” Harris Home Executive Director Jason Quick said the charity “helps raise the teenagers of Huntsville.” Started by Chessie Harris some 65 years ago, the Harris Home seeks to give the children “a personalized, normalized teen-age experience,” Quick said. “We want to give them what they were missing from the home environment.” And we know well, that in this day and age, a “personal and normal” experience for teens is something truly needed. So, come on out Tuesday, Oct. 2, and taste the best of what Huntsville has to offer in the best tailgate party you’ll ever attend. And help the Downtown Rescue Mission and Harris Home for Children come away with a big score. (Bud McLaughlin is editor of the Huntsville Business Journal. He can be heard Wednesdays at 6:30 a.m. with Fred Holland on WTKI FM 105.9/AM 1450 and www.wtkiradio.com)
Subsidiary of EVENT Publishing
Publisher/President ……… Todd Stephenson Editor …………………………Bud McLaughlin Writers……………………… Kimberly Ballard Lori J. Connors Wendy Reeves Graphic Design ……………… Justina Simon Website…………………………… Scott Seeley Photographers………………… Steve Babin Kimberly Ballard Marianne Higgins Jeff White Director of Sales ……… Carolyn Stephenson Distribution……………………… Victor Mace
Huntsville Business Journal is published monthly by EVENT Publishing, PO Box 14219, Huntsville, AL 35815. For advertising information call 256.533.8078, e-mail todd@eventhuntsville.com, or visit us on the web at www.huntsvillebusinessjournal.com. For editorial information contact editor@huntsvillebusinessjournal.com ALL CONTENTS ©2018. ALL RIGHTS RESERVED. REPRODUCTION OR USE IN WHOLE OR IN PART OF THE CONTENTS WITHOUT THE PRIOR WRITTEN PERMISSION OF THE PUBLISHER IS PROHIBITED. HUNTSVILLE BUSINESS JOURNAL IS A REGISTERED TRADEMARK OF EVENT PUBLISHING. ALL RIGHTS RESERVED. UNSOLICITED PHOTOGRAPHS OR ARTICLES ARE SUBMITTED AT THE RISK OF THE PHOTOGRAPHER OR AUTHOR. EVENT PUBLISHING ASSUMES NO LIABILITY FOR THE RETURN OF ANY UNSOLICITED MATERIALS AND MAY USE THEM AT ITS DISCRETION.
October 2018
3
TRANSPORTATION
SILVER AIRWAYS Taking Flight at Huntsville International Airport
By Bud McLaughlin
– both the leisure traveler and the business traveler,” he said. “Launching this service from Huntsville to Orlando is an excellent step to providing all of the citizens of the Tennessee Valley more air travel options and savings. “Support from the business com-
munity and our residents is integral to attracting and sustaining service like this in Huntsville and so we encourage everyone to fly HSV and Silver Airways so that we can continue to provide more air travel options to more destinations and with lower fares.”
Silver Airways has joined the ranks of air carriers at Huntsville International Airport and will bring another option for travelers to Florida. “We are very excited to start this highly-requested nonstop service for business and leisure travelers from Alabama and the Tennessee Valley travelling to the attractions, beaches and businesses of Central Florida, including NASA and Florida’s Space Coast,” said Alabama native and Silver Airways Vice President David LeNoir. “We are delighted with the support and outstanding reception from the folks in the Tennessee Valley for our safe, affordable and friendly air service.”
Silver offers one-stop connections from Huntsville to Fort Lauderdale and Key West and one-stop connections to Marsh Harbour and Freeport in the Bahamas. “The addition of Orlando…to the list of nonstop destinations for our market has been received with great excitement,” said Betty Fletcher, chair of the airport’s board of directors. Mayor Tommy Battle emphasized the importance of non-stop air service. “Our push to offer more non- stops to our top destinations has brought us another outstanding airline to better serve North Alabama,” said Battle. Airport Executive Director Rick Tucker said it’s important for area residents and businesses to take advantage of the opportunities at Huntsville International Airport. “Attracting and sustaining new air service is a community-wide matter that affects each and every one of us
4
Huntsville BUSINESS JOURNAL
Advertorial
October 2018
5
DEFENSE
SIERRA NEVADA EXPANDING Huntsville Footprint By Kimberly Ballard
Sierra Nevada has broken ground for a 60,794 square-foot aircraft modifications complex at Huntsville International Airport. It is the company’s second location in Madison County after opening a hangar facility at the Madison County Executive Airport last February. The facility is expected to be fully operational in early 2019. Sierra Nevada employs nearly 400 people statewide and supports numerous subcontractors in Alabama. Planned in preparation for future fixed- and rotary-wing program support, including STRATAG and Sierra Nevada’s bid for the Army’s Logistics Support Facility Management Activity contract, it is all part of SNC’s long-standing foothold in Huntsville’s aerospace and defense industry, according to Tim Owings, executive vice president for the company’s Integrated Mission Systems division. “LSFMA is only one of the possibilities,” Owings said. “We are working on several other things both domestically and internationally that
will affect operations in Huntsville and warrant the new facility. “We are in the process of bidding several large programs that we think we have exceptional solutions for and, should those come in, we will need the expanded space.” The modifications facility will offer key services such as innovative aircraft systems design, modification, upgrade and logistics support to military customers. It will also boast the added ability for on-site certification, inspection and certified maintenance. Sierra Nevada held an open house in June to exhibit its work in the helicopter market, which Owings said is a big piece of the company’s business in Huntsville. However, the company also builds traditional fixed wing aircraft for surveillance missions for U.S. Customs and Border Protection. “We are looking at all the military and there are several different products for which we provide big plane surveillance solutions,” he said. “One of the programs we are in the process of completing is a surveillance aircraft for the Jamaican Defence Force. In fact, we have a team in Jamaica right now from the Huntsville office finalizing delivery. “Some of (Sierra Nevada’s work) will be Armyrelated and local-related, but some of it will be international business as well.” Sierra Nevada is also known for its Dream Chaser spacecraft – a multi-mission space utility vehicle. For that reason, the company is also fostering key partnerships within the Alabama space community. In fact, Sierra Nevada is currently working with Huntsville/Madison County and airport officials as they apply for Federal Aviation Administration licensing to officially designate Huntsville International Airport as a spaceport, making a Dream Chaser landing on one of the airport’s commercial runways possible. “Since building the Dream Chaser space craft,
we have been looking at all kinds of landing sites and Huntsville has been one of those selected cities,” says Owings. “Huntsville has been awarded Phase II in that process and is currently undergoing further evaluation for that designation.” Owings also teased about more news ahead for the Huntsville market. “This expansion isn’t just based on the current business environment, but even more so on the projected business environment we are in,” he said. “We are moving forward with building the new hangar based on those projections, but there is more to come.”
BARON WEATHER RESEARCH INSTITUTE to Aid Transportation
By Bud McLaughlin
So, how many times do you check the weather before hitting the road or the water? Leave it to veteran meteorologist Bob Baron to help make those observations easier. Baron, CEO and founder of Baron Services, has launched the Baron Critical Weather Institute, which will focus on the unique weather and safety challenges facing the transportation industry. The goal is to create a comprehensive statewide weather observation network including road, river and atmospheric conditions. This will help ensure that citizens across Alabama will receive improved and more timely current conditions and forecasts on roadways and waterways as they travel across the state. Baron said “the Tennessee Valley and the state of Alabama uniquely experience a broad range of weather events and contains terrain that extends from subtropical seashores to mountains along with
navigable waterways, seaways, highways and airways. “Our state is home to numerous manufacturing powerhouses who produce transportation-related products, including automobiles, boats, railcars and aircraft.” The Institute’s efforts to develop, coordinate and support world class instrumentation across the state will provide a building block for major weather research and development, particularly in transportation. Guiding the Institute’s development are Dr. Deborah Barnhart, CEO and Executive Director of the U.S. Space & Rocket Center; Dr. John Christy, Director of Earth System Science Center at UAH and the Alabama state climatologist; Dr. Steve Goodman, retired Chief Scientist, GOES-R, NOAA; Dr. Jack Hayes, retired director, U.S. National Weather Service; retired Air Force Col. Brian
Hastings, director of Alabama Emergency Management Agency; Daryl Herzmann, Systems Analyst, Iowa Environmental Mesonet; Dr. Sytske Kimball, Chair of University of South Alabama Department of Earth Sciences and director of South Alabama Mesonet; John McLaughlin, retired Chief Meteorologist KCCI, Fellow AMS; and Tom Thompson, Partner, Chief Technology Officer, Baron. The Baron Critical Weather Institute will also provide education outreach, including helping student scientists understand the importance of weather instrumentation in studying the weather.
6
Huntsville BUSINESS JOURNAL
TECHNOLOGY
VT MILTOPE Opens Headquarters in Huntsville
Target Your Advertising to Reach Business Leaders in Madison County!
By Bud McLaughlin
VT Miltope, a producer of rugged computers, is setting a new course and, with it, moving to the Rocket City. “Our company is setting a new course with a new vision. As we build upon and enhance our current core product lines, we’ll be expanding into new related products and markets,” said retired Army Brig. Gen. Jack Haley, CEO and president of VT Miltope. “That’s why Huntsville is the perfect setting for our new headquarters. “Additionally, Huntsville will give us excellent access to our military and corporate customers as well as a highly skilled technical workforce.” VT Miltope, which also provides wireless networking for tactical and aviation applications, is expanding from Hope Hull, near Montgomery, to 7037 Old Madison Pike in Huntsville. “VT Miltope is well known for their … products that meet the warfighter’s needs in difficult environments,” said Huntsville Mayor Tommy Battle. “We’ve visited with the company through the years, and we’re happy to see them become a part of the Huntsville landscape. The Rocket City is the ideal place for VT Miltope to expand. “Our city has many competitive advantages with its highly skilled and highly educated workforce in a dynamic and low-cost community.” Madison County Commission Chairman Dale Strong cited the area’s infrastructure and the skilled workers. “In choosing Huntsville-Madison County for the new headquarters, VT Miltope aligns their core strengths and products with the fundamental assets of our region, including Redstone Arsenal, our established infrastructure, and especially our advanced workforce,” Strong said. “VT Miltope is an excellent company with a great product line, and we fully expect their team to succeed here,” said Chip Cherry, president/CEO of the Huntsville/Madison County Chamber. “They join a highly skilled community around Cummings Research Park, too, and we are happy to welcome them as a new Chamber of Commerce member as well.” VT Miltope has been dedicated to the innovation and improvement of its rugged computers and wireless networking solutions for more than 40 years. The company prides itself on ensuring that its products and systems are capable of withstanding demanding environmental conditions.
To advertise in Huntsville Business Journal Call 256.533.8078, Visit www.huntsvillebusinessjournal.com or e-mail carolyn@eventhuntsville.com
October 2018
7
TECHNOLOGY
HudsonAlpha Investigator on Forefront in Addressing Rare Diseases By Wendy Reeves
Alabama is working to be among the leaders in diagnosing rare diseases and Dr. David Bick of HudsonAlpha Institute for Biotechnology is part of the strategy. Bick, a clinical geneticist and a faculty investigator at HudsonAlpha, sees rare disease patients at the Smith Family Clinic for Genomic Medicine on the institute’s Huntsville campus. Because of his expertise in genomic medicine and more than 20 years of clinical experience, Bick was recently appointed by Gov. Kay Ivey to the newly created Alabama Rare Disease Council, established by the State Legislature. “There are a lot of people in Alabama with rare diseases and our purpose is to help our state’s leaders address those needs,” Bick said of the 10-member council. “We want to improve the healthcare of the citizens of our state and our leaders want to get expert advice in thinking about it.” He describes it as a diverse council with everyone from healthcare providers to researchers. “There’s a lot of representation on the council that bring a variety of voices together in a room if you will,” he said. “The council is charged with trying to improve our understanding of how to diagnose and make an impact on these on families dealing with rare diseases. “If we can collect information on impact and cost and coordinate and collaborate among different groups as a way to better inform lawmakers about what’s going on we can help citizens to improve their care and overall health.” He said the council was established to be a voice for individuals with rare conditions, and similar councils are being set up around the country. It’s also about realization of what genetics testing can provide. “Being a geneticist, we see people with neurologic or immunologic conditions that while they may be rare conditions, there are quite a bit (of people) out there with it. There’s a lot of work being done in Alabama for medicine in general but one thing we tried to emphasize is rare disease is not so rare,” Bick said. For example, he said cystic fibrosis affects one person in 2,500. “That doesn’t sound like a very big number but we have all heard of it,” he said. “Take that across the whole state and it all adds up.” Another example is spinal muscular atrophy, a condition that involves spinal cord cells dying, usually in children but has been seen in adults at about one in 10,000.
Dr. David Bick, HudsonAlpha Institute for Biotechnology
“If one in 10 Americans has a rare disease, that’s about 400,000 in Alabama.” “When you add up the numbers, it adds up to big numbers,” Bick said. “If one in 10 Americans has a rare disease, that’s about 400,000 in Alabama.” Patients often arrive a Bick’s office after seeing multiple doctors or specialists who have gone as far as they can with traditional testing models. “A neurologist can say to a person who is having trouble walking that their condition has something with the nerves in the legs,” Bick said. “It may be a peripheral neuropathy and simple testing shows that but it may be that one of these rare conditions in which the nerves are not working properly so we do DNA testing and look at the genes to determine the cause.” For some, there is treatment. For other conditions, there is no treatment but there may be
clinical or pharmaceutical trials in which the patient might be interested in participating in or following updates. “People want to know what will happen to them, for example, if it’s nerves in the legs, could it also impact other parts of the body?,” he said. “Sometimes it is yes, there are things we have to watch out for or it may be simply the current symptoms are the only thing they will experience.” Bick said there is “tons” of research going on around rare genetic conditions for people who have known conditions. “We study them because we know how to develop a treatment but if we do not know what a person has, how can we develop new treatments,” he said. Genetic testing is for those who have little or no family medical history and also for those who can’t get a diagnosis no matter how many tests or doctors they see. The first step for genetic testing is to call to the clinic or get a doctor referral. A patient will talk with a genetics counselor and if records are available from other doctors that have been seen, they will be reviewed and costs will be discussed. “After genome testing has been completed, if we can identify a genetic issue we will open up lines of communication with the physician about the condition and see if we can further identify the problem. Meanwhile, the doctor can tailor the patient’s care,” Bick said. He said of the 20,000 genes in the human genome, about 4,000 to 5,000 have been connected to specific conditions. The remainder can be identified as doing its job or it’s never been connected to a medical problem. Although there are hundreds of new conditions figured out each year. “It gets us to lots of conditions already known and lots of others are being discovered,” Bick said. “Once we’ve sequenced all the genes of a patient, we can go back every year or couple of years to see if something new has turned up that would show a connection between a specific gene and genetic condition.”
8
Huntsville BUSINESS JOURNAL
COVER
OH, THE H
Cashing in on the Business of Zombies, Super
By Kimberly Ballard / Pho
Americans will not just wander around with their arms or heads slashed open for fun this Halloween, but they will gash their wallets wide open in search of the perfect frightfest. According to 2017 National Retail Federation (NRF) statistics, more than 179 million Americans will participate in Halloween activities this year. Thirtyfive percent will either attend or throw a Halloween party and, as creepy as this sounds, they will spend more than $9.1 billion on Halloween-related products and services. This ghoulish phenomenon is enough to run chills up the spines of many businessowners and entrepreneurs looking for new revenue streams. Only Christmas has higher participation and seasonal profits in terms of how far people will go with decorations and holiday activities. In 2012, David Businda was looking into starting a retail business when a colleague suggested a Halloween store. At first, he was skeptical. “The more I looked into it, I discovered a Halloween Express franchise was pretty liberal in its operations, giving owners a lot of flexibility not found in most franchise opportunities,” said Businda. “There were no limits or demands on marketing or buying stock, and I was able to buy the North Alabama territory, so I can open stores as far south as Birmingham. “Right now, we are only in Hunts-
ville but that could change.” For the first few years, Halloween Express had a store on University Drive. “We are only open Sept. 1 through Nov. 1, so it is sometimes difficult to lease short-term store space,” Businda said. “Last year, Parkway Place welcomed us into the mall. “We see profits of between $300,000 and $350,000 in those 60 days, and I don’t see it slowing down.” Parkway Place Marketing Director Molly Mitchell said they have made a substantial impact on local sales. “Sales were up significantly throughout Parkway Place in September and October,” she said. “Halloween Express was an amazing addition to our tenant mix and we are thrilled to have them back at Parkway Place for the 2018 fall/Halloween Season. “They have expanded their footprint into two locations: one for home décor and props, and the other for costumes and makeup.” Part of the mall’s success has been sponsoring the Mall-o-Ween Extravaganza and hosting the annual Junior Face-Off contest for the past two years. Mitchell said there were more than 2,000 people in attendance last year. On Oct. 14, Halloween Express will hold a Spooky Halloween Makeup and Prop Class to prep kids for the Oct. 28 Junior Face-Off contest. Halloween Express will provide contestants with a goodie bag full of
make-up, fake blood, and some prosthetics. They will have 45 minutes to use everything in the bag to make up their parents as a Halloween ghoul or their favorite superhero or character. The first-place winner bags a $50 gift certificate. Due to the growing popularity of Halloween there are several areas where an entrepreneur may find unique business opportunities such as providing Halloween music for parties and events; offering decorating services for residences as well as office environments; setting up a haunted house and charging admission; creating and/or selling costumes, masks, prosthetics, and props; and coordinating and managing parties and events for children and adults. Many Huntsville business owners and nonprofits are already taking advantage of the benefits. Nichole Harris, co-owner and event manager for Birmingham-based ICrawlUSA, started an event management company that specializes in theme crawls and theme parties. Night Crawling Bar-crawling or just “crawling” has grown in popularity across the country in the past three to five years. They are putting on Huntsville’s first Night of the Crawling Dead Halloween Bar
Crawl downtown this year. Below the Radar Brewhouse on Holmes Avenue, SiP on Greene Street, Martin Bar and Bistro on Washington Street, and Pints & Pixels on Clinton Avenue are participating. Crawlers pay $15 for a ticket in advance, and dressed out in full costumes, go from bar to bar enjoying free and discounted drinks at participating bars. The event starts at 6 p.m. and drink specials run through 8:30 p.m., however the party lasts until midnight, culminating in a costume contest at Pints & Pixels. “The participating pubs can offer whatever drink specials and food too if they want, but we recommend the 3-2-1 method,” said Harris. “That is $3 wells, $2 shots, and $1 beers. Crawlers will receive a wristband and a passport that will guide them to all the participating bars.” Harris said it is a popular group event, but anyone over the age of 21 is welcome. “I think the attraction for adults in Halloween is the opportunity to relax and be a kid again,” she said. “People have responsibilities with jobs and families and other obligations, and this is a chance to celebrate, gather together with friends, dress up in a costume, and be anyone you want to be for the night.” Matthew Bakula, events coordina-
October 2018
9
STORY
HORROR!
rheroes, Mystical Creatures, & Severed Heads
otography by Steve Babin
tor at Lowe Mill Arts & Entertainment, said Halloween is just good business for the art studios. “We offer something for all ages beginning with the kids from 4-7 p.m. We have Trick or Treat inside the building for the children and all the studios participate with candy, and then we have a pumpkin carving contest,” he said. Then, at 8 p.m., things get theatrical as the grown-ups take over. In the past, there has been a Pizza Party Massacre and it may return this year; however, in addition to the adult Halloween party, Lowe Mill plans a Drive-in Horror Movie showing on the concert dock, charging $10 per car. There will be three classic Halloween horror flicks – rain or shine. One year it rained, but more than 6,000 people still showed up. “We are very performance-based here at Lowe Mill,” said Bakula. “Halloween is a time in which adults are free to be whatever they want to be whether it is a different person, some creature, or manifest a different personality – and then of course – enjoy a party.” Of Superheroes and Zombies While nearly half of all Halloweengoers will wear a costume, they will also
spend more money on their garb than anything else related to the haunted holiday. According to the NRF, men average $96 and women average $77 per costume. Witches, superhero characters, animals, and vampires are the most popular choices, but 20 percent of pet owners will dress up their family pet as a pumpkin, a hot dog, a bumble bee, or the devil. “Halloween is an escape from reality for a day,” said a spokesperson for Spirit Halloween, a seasonal retailer at Bridge Street Town Centre. “For adults, you can put on a Halloween costume and forget about work … and other pressures.” Rita Burkholder, owner of Fig Leaf Costumes, said it is not all about the costume itself, anymore, now that people can reek of zombies and realistically display severed limbs and deformities. “TV shows like the Sci-Fi Channel’s Face-Off has sparked a whole new way to project mystical effects using make-up, prosthetics, fake blood, and body painting to create realistic masklike faces and creature effects,” she said. Ronnie Young, manager of the prop and decorations division of Halloween Express, and owner of his own Redrum SSX Studios, said Halloween has been boosted by a love for the horror genre and TV shows such as “The Walking Dead,” “Face-Off” and “American Horror Story.” “You would be shocked at how popular it is with people to create wild characters using hair and make-up,” he said. “With 75 percent of Americans celebrating in a big way, it can expand beyond Halloween. “I have done zombie-themed corporate parties, horror-themed weddings, and birthday massacre parties.” Speaking of corporate parties, the Huntsville Young Professionals (HYP) have expanded what used to be a joint party with the Huntsville Land Trust in the Haunt at 3 Caves the past five years, into the Nightmare on Church Street on the east side of Big Spring Park this year. Mallory Johnston, president of HYP, said the big Halloween party has
always drawn more than 600 members and friends to the group’s only fundraiser throughout the year. “We don’t charge fees or dues to be a member, so this is an important and success event for us,” says Johnston. “We raised $13,000 last year and, even though we don’t have a costume contest, people go all out.” Strictly for adults 21 and over, HYP offers a cash bar and live band. Tickets are $35 per person and $55 after Oct 16. VIP tickets are $75 and includes six complimentary cocktails, access to bathrooms with no line, and an attendant who takes drink orders. Decorating for Demons Finally, as an extra for Halloween pumpkin carvers, Christy Wray of Silver Moon Art Studio in Scottsboro held several Jack-O-Lantern Sculp-
ture and Wicked Witch 3-D Door Hanger workshops at Top Key Market in South Huntsville. Wray teaches art lovers secret recycling methods to create Halloween sculptures and ceramics using things that most people have laying around the house. They even make their own air-dried clay. “I have been thrilled at the response to our classes this year,” she said. “We charge $125 for the Wicked Witch 3-D Door Hangers class and $140 for the Jack-O-Lantern sculptures and people go all out to create amazing sculpture for their homes, yards, and patios.” Considering people will decorate their home or yard, Wray’s classes, which are designed to last two to three hours over a 3-day period, often stretch out longer because participants are enthusiastic about their work creating realistic, life-size sculptures that will give neighbors a chill. Oh, and attendees are welcome to bring their own spirits … metaphysically and the other kind!
10
Huntsville BUSINESS JOURNAL
RETAIL
STOVEHOUSE Helps Heat Up a New Westside By Wendy Reeves
Photo: Wendy Reeves
Proving something old can have a fresh start is happening behind the brick walls topped by a large red “STOVEHOUSE” sign along Governors Drive just west of Campus 805. By the end of the year, restaurants and retail boutiques will be open there. Some office spaces are already in use at what is expected to become one of the city’s “destination hot spots,” according to Danny Yancey, founder and CEO of Stovehouse. “There’s nothing else like it in our area,” he said. “People will come here to work, eat, drink, and shop.” They’ll also attend events at Stovehouse — from concerts to community meetings — maybe even weddings, he said. It will be an environment, Yancey said, where people can create their own kind of experience with common use areas inside and outside for dining and relaxing. Construction is moving at a fast pace: six of the seven restaurant spaces have been leased and retail and office spaces are currently being leased. “I’ve had a lot of sleepless nights because I can see it in my head, what it should look and feel like,” Yancey said. “It’s been a challenge but it’s coming together.” Yancey used his cumulative background in human resources, mortgage banking and residential construction to put together a solid team to create his vision after he bought the historical building from Davis Lee. Lee, a well-known poultry farmer and businessman, acquired the Governors Drive building as a potential wood pellet stove production facility before selling it to Yancey three years ago. It had also housed Inergi and, most recently, LSINC. Yancey’s wife Patti is president of Huntsville’s Liberty Learning Foundation and CFO of Davis Lee Cos. “I wasn’t out looking for the old Martin stove building,” Yancey said. “But here we are, three years later, building it out and creating a special place for Huntsville residents and tourists who want to experience Stovehouse and all it has to offer.” Key components were putting together a team with experience in adaptive reuse projects, including Centric Architects of Nashville and Crunkleton Commercial Real Estate Group in Huntsville. Yancey studied adaptive reuse projects and said
he was especially inspired by what he saw happening in Chicago and Nashville, even Paris, Italy and Australia. He hired Centric because of the architect firm’s previous work and their immediate visions for the old building during their first walk through. “It took about a year of due diligence to come up with an idea of what we might could do with it,” he said. “I visited a lot of adaptive reuse projects because I was really interested in how we could preserve the old building. “It’s more expensive to do adaptive reuse … but this is a piece of our city’s history and I feel like it’s important to preserve our history.” Referring to the revitalized area focused on local arts, dining, and brewpubs as the Westside instead of West Huntsville also has historical ties. Yancey said “old timers” interested in the redevelopment have made it known that the area used to be known as the Westside. Before rockets, Yancey said the area’s largest employers were cotton mills and gas stove manufacturing. The mixed-use Stovehouse development is within in a large building steeped in that history. It started in 1929 when the Rome Stove Co. built it to manufacture its Electric Belle heaters. After the company went bankrupt, a bid on the machinery and building was won by W.H. Martin Sr. and Charles Martin, who owned King Stove and Range Co. in Sheffield, and Martin Stove and Range Co. in Florence. In 1939, they started their third business, Martin Stamping and Stove Co., turning out a small line of unvented gas heaters.
Through the years, the Governors Drive plant expanded with many additions to the building, often with whatever materials were on hand. Gas fuel tanks for acetylene torches were used as support posts in some part of the building. Structural engineers have examined the heavy gauge steel cylinders and say they are structurally sound, Yancey said. There are several roof types throughout the facility, including saw tooth, flat and hip roof designs. Yancey attributes it to periods of fast-paced growth and company changes through the years. During War World II, for example, he said the company made bomb crates. “They were huge,” Yancey says of the crates. “If you look around the Seminole and Lowe Mill area and see long narrow houses with lean-to roofs, those were leftover bomb crates. The government sold them for a quarter after the war was over.” After the war, the plant went back to making stoves. Visitors will find quirky elements and historical connections throughout the site once it’s completed. For example, a gas lighted shopping alley will reflect the heating source for the heaters that used to be made there. But some of those old rooftops will be gone to create outdoor courtyards. People who think the project is another Campus 805 are wrong, Yancey says. “They’re totally different but I think they will complement each other,” he says. Co-developer Wesley Crunkleton said his favorite part of the project is how different it is from anything in the area. “In our office, we enjoy working on things that are outside of the box as an atypical commercial real estate space,” he said Crunkleton said the property’s proximity to downtown, I-565, and Redstone Arsenal will make it an ideal hub for businesses, first-to-Alabama restaurant concepts, new entertainment and events. “We think it will be well received by all,” Crunkleton said. “From the millennials looking for a new cool spot to families with multiple children it will be a place they can all enjoy. “I think older Huntsvillians whose families have been around for decades and lived in the area, they will get a kick out of walking through and remembering what it was, the transitions of the property and enjoy what it’s becoming today. We look forward to welcoming the public, soon.”
October 2018
11
RETAIL
REI Co-Op’s First Alabama Store to Join MidCity Huntsville Lineup By Bud McLaughlin REI Co-op is opening its first location in the state at MidCity Huntsville, RCP Companies announced. A member-owned co-op, REI offers top quality outdoors gear, expertise and experiences. While anyone may shop there, members pay a lifetime $20 membership and share in the company’s profits through an annual dividend. It is scheduled to open in fall 2019. REI Huntsville will also have direct access to MidCity Park, a 40-acre public park with a trail system, lakeside dock, and an outdoor amphitheater. “Huntsville is a growing outdoor community …,” said Gail Kirkland, REI retail director for the Southeast district. “With more than 11,000 active REI members in the state of Alabama, we are excited to continue to grow in the South and invest in this community.”
“With more than 11,000 active REI members in the state of Alabama, we are excited to continue to grow in the South and invest in this community.” Similar to other communities REI serves, the co-op plans to invest in Alabama’s outdoor community, working with local nonprofits to steward and maintain local trails, parks and more. “REI is a best-in-class retailer that improves local communities by working to protect and preserve natural resources and offering high-quality educational and recreational opportunities,” said Max
Grelier, co-founder of RCP Cos., the developers of MidCity. “REI will provide an elevated experience for North Alabama outdoor enthusiast and the existing co-op members across the Tennessee Valley region. “This is a tremendous addition to MidCity, one that really complements our core values through recreation, entertainment, and health and wellness.”
Advertorial
12
Huntsville BUSINESS JOURNAL
MARKETING
EVERY VOTE - and Penny - Counts in Political Advertising By Lori J. Connors
Huntsville, District 2 waits in anticipation. After the votes from Aug. 28’s municipal elections were tabulated, the adage, “Every Vote Counts,” now resonates as gospel. More than 4,000 votes were cast, and the winner needed just 50 percent, plus 1 vote. Although newcomer Frances Akridge came in first place, she was 8 votes short of the victory. As a result, City Council District 2 is holding a runoff election Oct. 9 between Akridge and Mary Jane Caylor. If a margin that narrow doesn’t drive one to the polls to make a difference, nothing will. With the runoff right around the corner, it’s interesting to consider the role political advertising plays in influencing the average voter. Can media or the message effectively sway the indecisive? If so, which media; what message? Political advertising is not a “one size fits all” proposition; there are several approaches advertisers use to create an effective promotional package; all designed with victory in mind. As Akridge and Caylor brace themselves for Oct. 9, let’s examine this business of political advertising. In the realm of political advertising, social media has revolutionized the dynamics of campaigning. It’s a game changer, a level playing field; offering candidates, both known and unknown, almost instant recognition and reach. The new Digital Advertising Alliance guidelines have recently influenced the social media platform. “Sponsored Content” advertising requires actual fact-checking and thorough research to support the article’s message, focus, and to highlight the candidate’s key platform issues. Persuasive storytelling is combined with meaningful messages to resonate
“If there’s no strong competition, don’t spend a lot of money on advertising when all you need to do is generate name recognition”
with voters and position the candidate as someone they can trust. Local media consultant Laurie Heard, president at Move Digital specializes in social media strategy, advertising, and management. When it comes to social media, Heard recommends advertising early and often. “Initially, not to use social media to specifically campaign or promote a platform, but to listen to what the constituency has to say and to ask questions,” she said. It’s also important that one’s business or personal page is kept free of political promotions, as well. Heard cautions political hopefuls about the “bleed over” effect and how seemingly innocent promotions can be tagged as political via algorithms that Facebook has in place. The process of political advertising on Facebook, for example, must be pre-approved and labeled as “political” or “sponsored content.” This is to foster operational transparency, and the approval process can take up to two weeks, so it’s important to get the process started early in the campaign. “Advertising is about getting the vote,” Heard said. “When it comes to advertising budgets, it’s important to spend wisely; targeting voters to effectively generate votes.” How much and when? According to Heard, it all depends on the candidate’s level of name recognition whether the competition is strong and contentious, and the candidate’s advertising budget. “If there’s no strong competition, don’t spend a lot of money on advertising when all you need to do is generate name recognition,” she said. Despite the high level of effectiveness and low expense, social media is but one facet of the overarching media blitz strategy. David Driscoll, president at The Driscoll Group, is no stranger to world of politics or the process of political campaigning. Although he sees social media as a game changer, he also feels that the other media is necessary to round out an effective political advertising campaign. According to Driscoll, “social media helps develop name recognition and targeting voters, but it’s not as persuasive as television. TV is a piece of the advertising package that can’t be overlooked. It’s still the most impactive media, especially in larger cam-
“When it comes to advertising budgets, it’s important to spend wisely; targeting voters to effectively generate votes.” paigns. But, it’s also expensive. “Because millennials are becoming active voters, social media needs to be a key part of the advertising package.” Other ways to reach voters are via door-to-door visits and direct mailers, which are mainly used for candidate name recognition. “In the voter’s mailbox, there’s a competition for eyes, so it’s important that the mailers be oversized, with a prominent logo and the candidate’s name,” he said. As an advertising medium, radio is not used as often as it once because it doesn’t reach the under 40 voters. However, there are a few radio stations that Driscoll places ads with that target the 45 and older crowd. Although they are pricey, billboards are used but primarily for local name recognition. Despite the current political climate, mudslinging, “no-holds-barred” advertising has been with us ever since there has been political elections. Even though the public claims dismay, Driscoll said studies have shown that voters respond to negative advertising and he works with clients in developing a well-researched comparison ad. If there is negative information on the opposition that’s a matter of public record, it will be part of the ad campaign. “I won’t say anything that isn’t true,” he said.
October 2018
13
TRADE
Local Small Businesses GO GLOBAL for Defense Sales
By Lori J. Connors
The theater at the U.S. Space & Rocket Center’s Davidson Center was filled with small, locally owned defense contracting firms eager to learn more about Foreign Military Sales. They were not disappointed as The North Alabama International Trade Association (NAITA) presented their industry networking event, “FMS Across the Globe.” The keynote speaker, Maj. Gen. Jeffrey Drushal, commanding general of USASAC, discussed the goals for shortening the time between Letters of Request and Letters of Acceptance, as well as the need to combat the perception that FMS is a detriment for Army readiness. “Our International partners are relying on us to get it right, there are other choices out there; we need to collaborate to increase speed of execution,” Drushal said. Drushal also emphasized the Total Package Approach and it is a win-win for the army as well as FMS partners. As a component of the “4 Ts”: Trust, Transparency, Teamwork, and Total Package
Approach, TPA includes spare parts, equipment maintenance, training, documentation and nonstandard equipment. The first panel discussion, “FMS Around the Globe,” featured a trio of USASAC regional directors: Cols. Jason Crowe, Jose Valentin, and Michael Morton. The discussion focused on eliminating the competition by providing expert training, main-
taining a presence, and providing high-quality American equipment. The panel also touched on the importance of securing prime FMS market, responsiveness, unique regional requirements, and how industry can assist by providing compatible spare parts and training support. Timothy Schimpp, security assistant specialist for the Office of the Deputy Assistant Secretary of the Army for Defense Exports & Cooperation, presented the Export Control Update. He discussed Technology, Security, Foreign Disclosure (TSFD), the Conventional Arms Transfer Policy Implementation Plan, and how export control reform is working to create “Higher Fences around Fewer Things,” while lowering “fences” for items, such as spare parts. The second panel session, “Collaboration to Meet FMS Demand,” was Nancy Small, director of Small Business Programs for the Army Materiel Command. Panelists were Larry Lewis, president of Project XYZ, and Rob Willis, director of, Aviation & International Programs for Integration Innovation, Inc. (i3). They discussed how businesses must know their customers and what the business’s value proposition means to the customer, the importance of understanding the realities of cultural expectations, differences, and how business is conducted in other countries. For more information on upcoming NAITA events, visit www.naita.org.
14
Huntsville BUSINESS JOURNAL
SMALL BUSINESS
TCU CONSULTING SERVICES: A Small Company Wears a Lot of Hats By Kimberly Ballard From the day many small companies open their doors for business, they dream of one day employing well-compensated, eminently qualified employees working in strategic positions. They envision growth that broadens their original scope, opens the door to new business opportunities, and attracts diverse customers. They see themselves challenging the competition with their own unique capabilities and opening strategic geographical locations – all while enjoying skyrocketing revenues. If you are a small business facing what sounds like a daunting uphill climb, Alabama’s TCU Consulting Services is proof you can achieve all these goals and remain relatively small, highly diverse, strategically located, and solidly competitive, while still experiencing high profitability. Recently awarded the construction management services contract for the new LG Electronics solar panel plant in Huntsville, it will be TCU’s first official manufacturing project, but not one outside of their skill sets and expertise. “TCU Consulting Services is a company of architects, engineers, attorneys, contractors, and business-minded individuals and developers,” said Andy Bernard, TCU program manager based in Huntsville. “Those skill sets all together ensure the customer gets what they need for a successful project. We are an extension of the owner, representing their interests and their checkbook. We think like an owner. We think like a contractor. We think like a designer. “Although we have not been contracted from start to finish on a new manufacturing facility, our skill sets include people who have been project managers and consultants on manufacturing facilities and projects. We provide owner representation with oversight of
the design builder to help facilitate owner requests, logistics, purchasing, and scheduling. That’s what we do every day and we are really good at it.” TCU Consulting Services opened in Alabama 12 years ago. They have 24 employees located strategically where their clients need them to be: Huntsville, Birmingham, Auburn and Montgomery, For the last five years, TCU has been the program manager for Huntsville City Schools and according Bernard, the services they provide for LG Electronics are the same services they provide HCS, which included overseeing the building of the new Grissom High School in south Huntsville. “On the educational front, we’ve done just over 1.2 billion in revenue from school projects and we are proud of that. So when it comes to managing large projects, we don’t see a lot of difference in working with schools, a manufacturing facility, municipality work, or a corrections facility in terms of our capabilities and expertise,” said Bernard. “There may be different engineering processes, and maybe some different construction systems, but it’s still the same thing in a company like ours where everyone has multiple skill sets and wears several hats.” For example, Bernard said his degree is in civil engineering, but he is also a licensed general contractor and a certified energy manager. “My skill sets allow me to think like a developer today and an engineer tomorrow,” he said. “If we need architectural expertise to navigate a project, we have architects that work for us. We can call them in when their expertise and experience is needed.” This is a high point competitively and an advantage TCU often employs when responding to requests for proposals (RFPs). “We are up against a lot of competition for every
job, but we proudly go up against the big guys and we do very well,” he said. “Considering the companies we go up against are top notch professionals who are often much larger than we are, and equally as good at what they do.” The difference, he said, is ensuring that the owner go to contract with owner representation that is the right cultural fit. “We let the client know at the interview that they need to seek the right fit for how they see the project going. If we fit that vision, then hire us. If were not the right fit, then keep looking, and that’s fine. We appreciate that,” said Bernard. Surprisingly, TCU is not outwardly looking to grow in size. “We know who we are and that we have a lot to offer,” he said. “We are a small company that wears many hats. Granted, we have to know which hat to wear at the right time in our business, but that’s what makes us good at what we do – we know which hat to wear at the right time.”
Grissom High School Lobby
Business Briefcase Mitchell Plastics Expanding Its Huntsville Operation Automotive Interior supplier Mitchell Plastics is adding to its Huntsville footprint. The company’s facility is on U.S. 72 in the Chase Industrial Park. The addition will be approximately 130,000 square feet and will allow the plant to grow with 12 new injection molding machines, a new paint line, expanded assembly area, additional shipping bays, and new offices. Construction is expected to begin in October. Positions will be available for direct hire after completion of the expansion, estimated to be July 2019. Interested candidates can view all open positions at www.mitchellplastics.com and apply online. In the past few years, Mitchell Plastics has expanded its operations with a focus on supporting global customer requirements. In March 2014, Mitchell Plastics opened a manufacturing facility in Queretaro, Mexico and, in July 2015, the company added a sales and engineering office in Munich. In September 2017, Mitchell Plastics opened a manufacturing facility in Sterling Heights, Mich., and, this past July, a plant in Saltillo, Mexico. Mitchell Plastics is a privately held company based in Kitchener, Ontario.
Shelby Announces $29.1M Grant for Huntsville International Airport A $29.1 million federal grant will be used to build another taxiway at Huntsville International Airport. The grant was announced by U.S. Sen. Richard Shelby. “The city of Huntsville is growing at a rapid pace,” Shelby said. “This new taxiway will allow for increased accessibility and efficiency for air traffic to and from North Alabama. Additionally, the funding will play a vital role in enhancing economic development throughout the region. “As Huntsville continues to attract more business, it is essential that the city and surrounding area improve and modernize local infrastructure in order to meet the demands of its booming economy.” The construction of a 4,600-foot taxiway will provide access to airport property that can accommodate building up to 11 747-9 parking positions, as well as more than 600,000 square feet of hangar space – more than doubling the airport’s current cargo capacity. “The funds … will impact our facility as a whole and include improvement to the Jetplex Industrial Park, International Intermodal Center and the airport, itself,” said Airport Executive Director Rick Tucker. “The announcement ensures our ability to continue economic development initiatives within our region and positively impacts our entire state.”
October 2018
15
Business Briefcase Teledyne Brown/ACET Team Awarded DTIC Contract Teledyne Brown Engineering, as a part of a team led by Adams Communications & Engineering Technology (ACET), was recently named one of 15 awardees on the Defense Technical Information Center (DTIC) Information Analysis Center (IAC) contract. The $28 billion contract has a five-year base period with a total performance period of nine years if all options are exercised. For this contract, the team will provide research, development, and related services. “Teledyne Brown Engineering is pleased to be a part of Team ACET using our diverse capabilities to support DTIC,” said Teledyne Brown President Jan Hess. “We look forward to the opportunity to support the warfighter with systems and technologies for the Department of Defense.” The IAC is responsible for the collection, analysis, synthesizing, production and dissemination of scientific and technical information for the DoD and other agencies. Teledyne Brown will focus on weapons of mass destruction, alternative energy and chemical, biological, radiological and nuclear defense.
Ad4! Group Expands Into Marshall County Ad4! Group, a Huntsville-based branding, marketing, and advertising firm, is expanding into Marshall County. The company has hired Guntersville natives Janice McClellan and Greg Hundley to handle the reins in Marshall County. “For me, it was easy to partner with Greg Hundley and Janice McClellan,” said Ad4! Group owner Felica Sparks. “Janice has spent most of her adult career working with people and small businesses and her people skills are second to none. “Greg spent the first part of his career working in sales and marketing in the Boston area before returning to Marshall County and working with numerous small companies. Greg’s strategic approach fits very well with our overall development strategies.” AD4! Group works with large and small businesses and focuses on branding strategy, brand development, marketing and more. Visit www.ad4group.com.
Parsons Opens High-Bay Facility
BAE Systems Breaks Ground for $45.5 Million Expansion BAE Systems held a ground-breaking for its $45.5 million Cummings Research Park. The company’s multi-phase growth plan includes the immediate expansion of its offices on Discovery Drive and the development of a state-of-the-art manufacturing and office space facility in Cummings Research Park. Work at the 20-acre site will consist of new programs and existing business, including the design, development, and manufacturing of precision munitions and aircraft survivability technology. BAE Systems is working with local developer Samples Properties, Fuqua & Partners Architects, and Pearce Construction to build the 83,000-square-foot facility, which will include engineering development, manufacturing laboratory space to support the Department of Defense.
Nesbitt Names Fountain as Huntsville Market Executive S.S. Nesbitt, a Birmingham-based insurance company, has appointed Senior Vice President Dick Fountain as its Huntsville market executive. Over the past year, S.S. Nesbitt’s Huntsville office has expanded its property and casualty and employee benefits group practices. “Huntsville is one of the most dynamic business environments in the entire country,” said company President Paul Barber. “Our success as an agency is vitally connected to growing our presence in North Alabama.” Fountain, an independent agent in Huntsville for more than 30 years before joining S.S. Nesbitt in 2014, said, “I’m excited about the opportunity to work with our sales team. “I have a deeply rooted love for this area and for serving businesses with their employee benefits and property and casualty needs.”
Parsons has opened a 25,000-square-foot Integration facility at its site on Diamond Drive The facility accommodates the company’s growing portfolio of work, including software and hardware integration, for customers in the defense, intelligence, and infrastructure sectors, as well as research and development needs for the company’s technology solutions such as the ZEUS Laser Neutralization System. “Our work in Huntsville keeps the nation safe, and there’s nothing more important than that,” said Parsons Executive Vice President of Engineering & Technical Services Mike Dewitz. “We’re proud to inaugurate this integration facility that increases our effectiveness and also grows the community as we hire more employees.” Parsons employs approximately 500 people in the Huntsville area and plans to hire an additional 50 local employees following this expansion.
DC BLOX Cuts Ribbon on Huntsville Facility DC BLOX, an Atlanta-based provider of data center, network and cloud services at the edge, has launched a data center facility in Huntsville. Located at 333 Diamond Drive, the data center will offer 9,000 square feet of expandable data center space as well as 3,600 square feet of office space, including conference rooms, staging areas and workstations, in Phase 1 of development. Once complete, the entire facility will offer 36,000 square feet of data hall space.
Rocket City Trash Pandas to Show Their Colors After revealing the new baseball team’s name in September, BallCorps will announce the team’s colors, logos and merchandise Oct. 27 at a free community celebration in Madison’s Dublin Park. The event will feature a concert and a fireworks extravaganza. It will also mark the first opportunity for fans to purchase official licensed Rocket City Trash Pandas merchandise. The Trash Pandas will also open a merchandise store next to the Apple Store at Bridge Street Town Center on Nov. 12.
16
Huntsville BUSINESS JOURNAL