December 2022 Issue Huntsville Business Journal

Madison

Leading Work-from-Home Staff: Rethinking Task Management and Technology

According to the recently pub lished 2021 American Community Survey(1), the number of Americans primarily working from home tripled from 2019 to 2021 (from rough ly 6% to 18% across the board). Of course, some geographical areas and certain segments of the work force were more affected by this shift than others. Most notably, the Dis trict of Columbia saw nearly half (48%) of its workforce working re motely in 2021.

This major transition was fueled by the global COVID-19 pandemic as businesses and government agen cies scrambled to figure out new ways to keep the wheels of commerce and industry turning while also protect ing their employees and customers. The workplace and the marketplace have long acted as central hubs for American communities, so this sudden change is something social scientists and business leaders will be studying for years, and even decades, to come in order to fully understand its impact and ramifications on mod ern society.

The more immediate concern for many businesses, however, may appear to be a rather simple ques tion at first: how do leaders manage these new teams? Unfortunately, the answer is not so simple. The good news? A wave of new technology has sprung up to help address this rapidly growing need. Successful businesses in this new era will work to reframe the way they think about staff and labor, will familiarize them selves with the many tools available to facilitate remote work, will create virtual environments that are effec tive and secure, and will utilize the technologies and strategies that work best for their organization.

Rethinking the Management Approach

There is a popular concept in leadership development referred to as “management by walking around” or “management by wandering around”

(MBWA). It encourages managers to keep their ears to the ground by being regularly up-close with their staff and where the actual work is taking place, as opposed to being unreachable and shuttered away in their office. This same concept can be found in the gemba walks, a strategy taught by Lean Six Sigma, that originated from the Japanese manufacturer Toyota. Remote work, however, makes both of these strategies conceptually impossible. The three main challeng es this presents for leadership are: how do we continue to track and promote productivity; how do we maintain clear and open commu nication with staff; and, how do we build and support company culture without in-person social events? Thankfully, the right technology can provide the solution to these com plex problems.

Choosing the Right Software

Project management software has been around for a long time, but with the recent spike in remote work, its use has equally grown. Managing people has become more about man aging tasks and there are plenty of options to choose from: Asana, Trel lo, Todoist (to name a few). All of these programs allow users to create tasks, assign responsibility, create ap proval chains, set deadlines, schedule reminders, book appointments, and mark items complete. Even Gmail or Outlook, with their built-in calendar functions, can accomplish some of these things without having to add

additional software. Decision-mak ers will need to carefully consider the needs of their organization and the features being offered before select ing which software to implement.

Despite social distance, good communication remains paramount to success. Unsurprisingly, Zoom saw its annual revenue increase by more than $3.5b(2) from 2018 to 2021. MS Teams also allows for meetings and team (group) chats. Meanwhile, Slack - which func tions a lot like Discord, a popular app amongst geeks and gamers - has found growing popularity in the workplace as a more instantaneous form of communication.

While others exist, Google Drive seems to have a monopoly when it comes to file sharing in the pro fessional world. Little harm there, however, as it is a fantastic option that is fairly easy to use.

Another thing to consider in this arsenal of options is software for creating presentations (i.e., Canva) and video recordings (i.e., Loom or Screencast-O-Matic). These pro grams can really elevate and ease certain aspects of the remote busi ness, especially areas like on-boarding and training.

Lastly, another approach may be purchasing and implementing a staff platform. Hubstaff (and Hubstaff Tasks), for example, attempts to roll up many of these different functions into a singular entity, which hope fully makes managing them easier for

By Alexander Duck

the employee and management.

The Role of Cybersecurity

Whether employees are logging in from home using their own com puter or one provided to them by the company, remote access to servers and systems presents new risks in the cybersecurity landscape. Likewise, a growing number of companies are now choosing to allow staff to Bring Their Own Device (BYOD) to the office and complete their work using their own laptop or smartphone. Any company that allows remote work or BYOD will need to have extra policies and security measures in place to as sure safety and security for their staff and customers. Chris Botha at Di alpad(3) provides an excellent guide to creating a BYOD policy and a list of 8 tips for reducing security risk. If drafting security policies from scratch sounds like a monumental challenge, SANS Institute(4) provides a whole array of security policy templates that can be adjusted to meet your needs.

Conclusion

The workplace is currently expe riencing its greatest transition since the mid-twentieth century. Whether employees are working remotely from home or bringing their own de vices into the office, the environment for many is distinctly different today from what it was just 5 years ago. What remains true is that successful businesses and leaders will continue to adapt, listen to their staff, gather feedback, adjust accordingly, and step forward into the future.

A Conversation with Richard’s Lighting

Sit Down With Success is a feature of the Huntsville Business Journal on entre preneurs and their keys to success. To read the full story, please visit the Huntsville Business Journal website.

In 1963, Richard and Baraba Lapi dus made the life changing decision to move to Huntsville and open a light ing business. At the time, Huntsville was undergoing one of its first explosive growths that would help define the im age of the once small town for decades to come.

Compared to Birmingham, the city of Huntsville would offer up new chal lenges and risks for the Lapidus family. These same challenges and risks, from es tablishing a healthy work-life balance to adapting to the ever-changing economic demands of the economy, would ulti mately help define the style of business that Richard’s Lighting would pursue, and also lead to the same great success that the small business still maintains to this day.

Richard Lapidus would eventu ally pass the business on to his sons. While his eldest son, John Lapidus, found success elsewhere and would eventually return to the business, his

other two sons Mike Lapidus and Brad Lapidus eventually took over the busi ness as co-owners.

What would you say is the secret to your success?

Brad (B): Paying attention to the details, especially right now when cus tomer service has become so automated and so out of touch with the customer’s immediate needs. We were always good before, but we are really good now.

Mike (M): It’s not like you call here and you have to press three buttons on your phone before you connect with someone. Being hands on and just be ing available in person really helps keep people in our showroom and off of or dering cheap products online.

B: That’s right. Just be available. What would you consider to be the greatest challenge of owning a business and how do you manage that?

M: The biggest challenge is adapt ing to various changes. The pandemic is a good example, and really the fact that a lot of retail space is moving online. One of the most important aspects of owning a business is being present and taking an active role in communicating with your team. And these conversations are

not just between Brad and myself. We ask sales people, electricians, and outside decorators when they come in an important question: “what do you see here that we can do better?”

B: Communicating is re ally important, and having open dialogue with the community is really helpful. Our dad was es pecially good at that. He would invest his time into the communi ty, and they would give him ample feedback that helped him adapt the business to consumer needs. It’s our core principles that help us adapt: stay ing present, paying attention to details, and learning what works in your market. What works in one city will not always work in the next.

What advice would you give to someone considering starting their own business?

M: Borrowing from our family’s slo gan “Serving the Customer,” all I will say is this: if you take care of the customers, they will take care of you. The bottom line is just that. It’s not just about the sale and the dollar, but it is more about giving the customer the sale that they

By Gus Wintzell

Photo by Steve Babin

need, not the sale that we need. Every thing else will fall into place.

B: I cannot really agree more. It took me a long time to realize how im portant this was. Our father is a great example. I truly do not go a single week without a customer, both repeat and new customers, that come in here and tell me “let me tell you a story of how your father helped me.” It’s this kind of legacy, stemming from this cus tomer service model, that our dad left in Huntsville. He passed in 2012, and we still have customers choosing to shop with us because of the impact he made on their experience. w

Wintzell Writers

Mike Easterling

Ashlyn Grey Marie Johnson Noah Logan Dawn Suiter Contributing Writers Alexander Duck Scott Harbour Jenn Memolo Graphic

Justina Simon Website Jim Gharib Photographers Steve Babin Justina Simon

Mace

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New Huntsville MLS NEXT Pro Club Announces Team Name, Logo

One thousand soccer fans packed Mars Music Hall on the night of Wednesday, November 9th for the brand unveiling of Huntsville’s new MLS NEXT Pro soccer club.

The club’s name will be the Huntsville City Football Club (Hunts ville City FC), and is set to play their inaugural season in 2023 while playing its home games at the newly-reno vated Joe Davis Stadium, the former home of Minor League Baseball's Huntsville Stars.

Huntsville City is one of seven new MLS Next Pro teams to debut in 2023, joining the other 21 reserve teams affiliated with Major League Soccer clubs. MLS Next Pro, launched in 2022, serves as the stepping stone between MLS and its youth acad emy arm, MLS Next, in the league's professional development pipeline. Huntsville City FC is affiliated with Nashville’s MLS club, Nashville SC.

During the public event, the voice of Nashville SC Tony Husband and local television personality Payton Walker, Huntsville City FC executives also revealed the team’s logo which was inspired by the City of Hunts ville’s official seal and longstanding space industry.

Huntsville City FC’s logo takes inspiration from the official seal of the City of Huntsville as well as its longstanding space industry, which is home to NASA’s Marshall Space Flight Center (MSFC), Missile De

fense Agency, and Army Space and Rocket Command, among others. The circular shape of the seal and rocket boosters influenced the circular shape of the logo, the shooting star in the middle represents the idea of orbiting space and Huntsville’s history with the space industry, and the checkerboard design on either side of the logo pays homage to the checkered pattern on the Saturn I rocket that was developed at the MSFC.

The deep sea blue serves as the primary color, bordered by rings of sky blue and also features a check ered pattern, a salute to the Marshall Space Flight Center, where the Saturn I rocket was developed. A shooting star wraps around the club's initials, HCFC, which sits in the middle.

Huntsville Mayor Tommy Battle was in attendance.

“This is a banner day for Huntsville as we welcome the new Hunts ville City FC brand into our community," Battle said in a statement. "The Huntsville market is well known for sup porting its sports teams, and we’re excited for this opportunity to diversify our offerings and add professional soccer to our portfolio. I’ll be the first to purchase season tickets and can’t wait to experience the matches in Joe Davis Stadium.”

Nashville SC chief executive Ian Ayre is also president of Huntsville City and will partner with managing director of business operations Chad Emerson to oversee the club's day-to-

By Noah Logan /

by Noah Logan / HCFC

day dealings. Emerson is the former CEO of Downtown Huntsville, Inc.

“Today is an important milestone in a series of pivotal moments that will take place in the coming weeks and months as Huntsville City FC truly comes to life in this city and in North ern Alabama," Ayre said.

“We are really excited to finally share our team’s identity with the City of Huntsville and the world,” said Majority Owner John Ingram.

“The energy and partnership we have experienced in Huntsville is remark able and we couldn’t imagine a better place for Huntsville City FC to be.”

Tommy Battle also became the first person to purchase season tickets for the 2023 MLS NEXT Pro sea son. To follow his steps in becoming a Huntsville City FC Season Tick et Member or to learn more about the available ticketing options, visit https://am.ticketmaster.com/huntsvil lenextpro/buy. w

Photo

How the SBA Can Help Your Small Business Succeed, Part 1

There are countless resources to be found for local and small busi nesses, but the United States Small Business Administration stands as the lone go-to resource and voice for small businesses, to be backed by the strength of the federal government. The SBA aims to empower and motivate entrepreneurs and small business owners with the resources and support they often desperately need to start, grow, or expand their businesses, or even to recover from a declared disaster.

“SBA’s mission is to empower entrepreneurs and small business owners to start, grow, expand, or recover from a declared disaster.”

It delivers services through ex tensive networks of SBA field offices and partnerships with public and private organizations.

Megyn Rodriguez, Outreach and Marketing Specialist and Public In formation Officer at the Alabama District Office for the U.S Small Business Administration, spoke with the Huntsville Business Journal on some of the many ways that the SBA dedicates itself to providing support for its namesake.

“SBA’s mission is to empower entrepreneurs and small business owners to start, grow, expand, or re cover from a declared disaster. SBA achieves this mission through four principal ways: Counseling and Education, Access to Capital, Gov ernment Contracting Programs, and Disaster Loans,” shared Rodriguez.

Through Counseling and Ed ucation, the SBA partners with organizations around the country to provide training, opportunities, and education in their local area.

“Specifically, SBA partners with the Small Business Development Centers (SBDC) and the Procure ment and Technical Assistance

Centers (PTAC), which are affili ated with the major universities of the state of Alabama, including the University of Alabama Huntsville, to provide free or little cost counsel ing and education. This is beneficial to entrepreneurs and small business owners at any stage of development: planning, launching, managing, or growing a business. They host week ly webinars on key business topics,” Rodriguez explained.

“The Veteran’s Business Out reach Center at Mississippi State University (VBOC at MSU) serves active duty transitioning service members, and their spouses, as well as Guard, Reserve, Veterans of all eras and military-connected family members in Mississippi, Alabama, and Louisiana”, shared Rodriguez, “VBOC at MSU also routinely make trips to the Redstone Arsenal in Huntsville to host SBA’s Boots to Business (B2B): Introduction to

“Specifically, SBA partners with the Small Business Development Centers (SBDC) and the Procurement and Technical Assistance Centers (PTAC), which are affiliated with the major universities of the state of Alabama, including the University of Alabama Huntsville, to provide free or little cost counseling and education.”

Entrepreneurship, a two-day in-per son course at military installations to transitioning Veterans. B2B introduces participants to key ele ments of small business ownership to

By Ashlyn Grey

assist in determining if entrepre neurship is a feasible and practical transition strategy.”

For those who prefer to learn at their own pace, the SBA has two free e-learning platforms that walk participants through topics such as planning, launching, managing, and growing a business. These class es are Ascent for Women – A free online learning platform for women; and Learning Center – the SBA’s Learning Center to start, pivot, or grown small businesses, which is available to all.

With Access to Capital, the SBA partners with banks, credit unions, and community financial institu tions all over the nation to provide competitive business loans to cred itworthy individuals who otherwise struggle to obtain a conventional loan. Small Businesses often struggle to obtain capital because they are considered “high risk” by conven tional lending practices. Therefore, the SBA provides a guarantee to lenders to minimize their risk and ensure that more small busi nesses can get access to capital at reasonable terms.

Loans guaranteed by SBA range from small to large ($500 to $5 million) and can be used for most business purposes, including longterm fixed assets and operating capital. Some loan programs set re strictions on how recipients can use the funds so checking with an SBAapproved lender when requesting a loan is always recommended. To find SBA-approved lenders, the SBA

Lender Match tool is readily avail able and can be found on the SBA’s website, www.sba.gov.

On the topic of Government Contracting, Rodriguez shared, “Government Contracting is huge in the Huntsville and Madison areas with major players like NASA, FBI, and many other federal, state, or lo cal agencies. The U.S. government is the largest customer in the world.

It buys all types of products and services — in both large and small quantities — and it’s required by law to consider buying from small businesses.”

“In fact,” she continued, “at least 23% of prime contracts must be given to eligible small businesses. How government contracting works is a process of requesting proposals, evaluating bids, and awarding con

tracts. Through its SBDC and PTAC network, SBA offers counseling and assistance on how to access your business, meet basic requirements, education on how to win contracts, and education on the different types of contracts.”

Additionally, the SBA’s desig nated Women’s Business Center (WBC), the Catalyst Center for Busi ness and Entrepreneurship is located in Huntsville and specializes in sev eral government contracting topics. While their target is women, they do provide services to anyone, and have numerous accelerator programs such as a HUBZone (a type of contract ing certificate), Veteran-owned, and Woman-owned. Like the SBDC or PTAC, they too host weekly webinars and other events. SBA has numer ous Contracting Programs that small businesses could take advantage of and participate in. For more informa tion, see all available at Contracting assistance programs (sba.gov).

Lastly, in Disaster Relief, ac

cording to the Institute for Business and Home Safety, one in four busi nesses that close because of a disaster, will never reopen. For small busi nesses, the risks are high, and that’s why the SBA offers resources for how to prepare for disaster to miti gate risks in the event of all types of disasters: hurricanes, tornadoes, wild fires, floods, hail, a pandemic, and even cyber security.

“Should disaster strike, the SBA offers disaster direct loans for relief, recovery, and future mitigation. Busi nesses of all sizes located in declared disaster areas, private nonprofit orga nizations, homeowners, and renters affected by declared disasters, includ ing civil unrest and natural disasters. SBA disaster loans can be used when losses are not covered by insurance or funding from the Federal Emergency Management Agency (FEMA) for both personal and business operating expenses that could have been met had the disaster not occurred,” con cluded Rodriguez. w

Local Chamber Honors Small Businesses

The Huntsville/Madison Coun ty Chamber recently hosted the 37th annual Small Business Awards Gala to honor local businesses for their success in growing Huntsville’s economy and image. The event was held on November 01 at the Von Braun Center.

Key award winners of the event include Jonathan Hard of H2L Solutions, who won the Russel G. Brown Executive Leadership Award, and Mason Dixon Bakery & Bistro for the Women-Owned Business of the year award.

The list of winners include:

• Young Professional of the Year: Kristy Powell, Cepeda Systems & Software Analysis

• Nonprofit of the Year: Still Serving Veterans

• Professional Services Busi ness of the Year: NXTSTEP

Family Law

• Emerging Business of the Year: InSight Strategic Solu tions

• Culinary Business of the

Year: The Veggie

• Government Contracting – Professional Services Busi ness of the Year: Engineering Computer Simulations

By Gus Wintzell /

• Government Contracting –Technology Business of the Year: Avion Solutions

• Service Business of the Year: Century Automotive

• Medical Practice of the Year: Johnson & Hayes Physical Therapists

• Technology Business of the Year: Summit 7 Systems

• Woman-Owned Business of the Year: Mason Dixon Bak ery & Bistro

• Russell G. Brown Executive Leadership Award: Jonathan Hard, H2L Solutions

Nominations for the above awards totalled close to one hun dred companies and individuals. To view the full list of nominations, please visit the Huntsville Business Journal website. w

Photos courtesy of the Huntsville / Madison County Chamber of Commerce

Pictured below: Mason Dixon Bakery & Bistro was awarded the Women-Owned Business of the Year (Huntsville/Madison County Chamber of Commerce)

Destination Huntsville: Rocket City Attractions

The Huntsville/Madison County Convention and Visitors Bureau has compiled the 2022-2023 Huntsville Destination Guide. The pamphlet de tails many of the particular attractions that visitors to the city really should come and see.

It’s no surprise that the first stop on the tour is the Space and Rocket Center. The Saturn V Rocket does tend to draw the eye, after all. At the Da vidson Center for Space Exploration, Visitors can view Space Age artifacts, such as a moon rock from the Apollo 12 mission, or the Command Module off of Apollo 16. Flight simulators and g-force equipment give visitors an as tronaut experience that they can’t get anywhere else.

Contrasting with the futur istic Space and Rocket Center, Huntsville’s history is on full display at attractions such as the H.C. Blake Art and History Center or Bur ritt on the Mountain. At 167 acres of lovingly-preserved 19th-cen tury architecture, Burritt on the Mountain uses living history interpret ers to showcase life in pre-industrial Alabama.

Those looking for expert insight can join guided tours, like the autum nal Huntsville Ghost Walk, or the Huntsville Civil Rights Landmarks Tour. The Digital Huntsville History Tour allows visitors to take in the city’s history at their leisure.

The natural beauty of North Ala

bama can hold an allure all its own. Monte Sano State Park offers 2,140 acres of lush green woodlands, with twenty miles of hiking trails and doz ens of campsite facilities. To the south of the city is Ditto Landing, a marina and watersport hub for those look ing to enjoy boating and waterskiing on the Tennessee River. The guide in cludes a scannable link to an extensive guide for the numerous waterways around the city, where one can enjoy kayaking, inner tubing, or fishing.

One of the more clever trends that Huntsville has embraced has been

the repurposing of its old, disused facilities, keeping their distinctive architecture while putting them to fresh new use. Lowe Mill is one of the earliest examples of this, with its nu merous local shops, art galleries, and restaurants built into what was once a textile mill. Others followed suit, such as Stovehouse, which was once the Martin Stove Factory, and Campus No. 805, which was built in a former middle school.

As Huntsville has been growing and developing as a true city, it has been to pick up some of the finer arts that naturally arise in such a hub. Opera Huntsville and the Huntsville Ballet are newer additions to the city, while the Huntsville Symphony Orchestra has been performing for over fifty years.

For those looking to leave the black ties at home, Huntsville boasts a number of music ven ues. The Mark C. Smith Concert Hall at the Von Braun Center has hosted concerts for many years, but the newly-completed Orion Amphitheatre at Apollo Park is a great outdoor venue, as is Big

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Spring International Park, with its Concerts in the Park and Jazz in the Park events.

Bridge Street Town Centre and Parkway Place Mall accommodate those in need of a little retail therapy. Bridge Street Town Centre has a lovely atmosphere, with its broad, cobbled walkways, street lanterns, and elabo rate landscaping. Those looking for something more unique can check the many antique stores in town, such as the Railroad Station Antique Mall, Firehouse Antiques, and the Alabama Antique Store.

Huntsville has quite a few restau rants, ranging from rustic Southern comfort food at G’s Country Kitchen to fine Italian wining and dining at Mazzare’s Vinoteca. Steakhouses like Char Restaurant serve superior cuts grilled to perfection, while Chef Will the Palate at Lowe Mill caters to the more herbivorous among us with a fresh and crisp vegetarian menu.

The Huntsville Destination Guide not only contains all that visitors and tourists may wish to see in the city, but it has suggestions that even longterm residents might want to check out. The Destination Guide is free for download, to receive by mail, or to pick up physically at the Huntsville Visitor Center downtown and at the Huntsville Airport.

Marie Johnson /

Photos courtesy of The Huntsville CVB

41% of Households in Alabama Can’t Afford Utility Bills Amid Inflation

In a recent study done by Lend ingTree, the statistics firm found that 41.4% of households in Alabama say they have reduced or skipped necessi ties like food or medicine in order to afford their energy bill.

While gas prices have made head lines with high inflation and more and more commuters getting back on the road, consumers are not the only ones cutting costs, so they can pay at the pump. In fact, according to Lending Tree, more than one-third (33.9%) of U.S. households say they reduced or skipped necessities like medicine or food to pay an energy bill within the past 12 months.

Many households make many ef forts to reduce their household energy use to make ends meet, even if it meant risking their health. In fact, just over 1 in 5 (20.8%) households reported keeping their homes at temperatures they felt unsafe or unhealthy. Regard less of what they have done to keep costs down, though, 28.9% of house holds in Alabama were unable to pay at least part of one energy bill in the past 12 months.

Within the past 12 months, elec tricity prices have increased by 16.0% per kilowatt-hour (kWh).

“In the same period natural gas prices rose 33.6%. Unexpected gas shortages are largely to blame here, mainly due to international conflicts,” LendingTree shared

“According to the U.S. Energy Information Administration (EIA), natural gas exports from Russia to Eu rope reached their lowest level in 40 years, prompting the U.S. to export large amounts of its already limited inventory to help fill in the gaps,” says LendingTree’s analysis of U.S. Census Bureau Household Pulse Survey data.

Despite rising prices, energy de mand has remained high within the U.S. In fact, the EIA estimates that U.S. households consumed 1.7% more electricity this summer than last year’s. That’s because this year brought a particularly sweltering summer — the third hottest on record, according to the National Oceanic and Atmo spheric Administration (NOAA).

While this is a widespread prob lem, LendingTree took the initiative to take an even closer look at South ern states to find that Southerners are most likely to reduce or skip basic expenses to afford their energy bills, according to the analysis of U.S. Census Bureau Household Pulse Survey data.

The study reports that households

in these states endured an especially hot summer. Texas saw the secondwarmest summer on record for the state, while Mississippi boasted one of the top-10 warmest Junes on record. 2021 was no breeze, either. In fact, July 2021 was Earth’s warmest month on record, which certainly contrib uted to rises in energy expenses. West Virginia had its 11th warmest sum mer in 2021.

Texas tops the list, with 44.8% of households forgoing necessities for energy, to be closely followed by Mississippi (42.9%), West Virginia (41.7%), Oklahoma (41.6%), and Alabama (41.4%)

While the heat makes a big difference, LendingTree chief credit analyst Matt Schulz says it’s certainly

not the only factor.

By Ashlyn Grey

“There’s no question that income plays a big role, too,” he says. “Mis sissippi and West Virginia are among the lowest-income states in the country, which means less financial margin for error for people who live there. Inflation has shrunk that already-razor-thin margin for error to zero for many people. When that happens, payments get missed and expenses get slashed.”

On the other end of the list, LendingTree shared that 20.3% of households in the District of Co lumbia say they reduced or skipped expenses to pay their energy bill — the lowest of any state. D.C. is followed by Vermont (24.4%) and Delaware (24.6%).

Households in the District of Co lumbia and Delaware have income levels above the U.S. median, while the median in Vermont is just below.

“It’s no secret that Black and Latino households typically have lower incomes than white or Asian households,

The three states have moder ate summer temperatures. In D.C., normal summer temperatures are 78.9 degrees Fahrenheit, on aver age, and the last two summers were only slightly warmer. Vermont and Delaware are similarly temperate. Although both had a few days of extreme heat over the past two sum mers, Vermont only broke high temperatures twice.

LendingTree also took the initia tive to examine the racial differences nationwide among households that were struggling to pay parts of their bills and revealed that 40% of Black households report they couldn’t pay at least part of their energy bill in the past 12 months.

They’re followed by

“In the same period natural gas prices rose 33.6%. Unexpected gas shortages are largely to blame here, mainly due to international conflicts”

and that creates major financial difficulties even in the best of times”

Latino households at 35.9%. Mean while, 17.7% of white households and 12.1% of Asian households say similarly.

According to Schulz, income dis parity plays the largest role here. “It’s no secret that Black and Latino house holds typically have lower incomes than white or Asian households, and that creates major financial difficul ties even in the best of times,” he says. “When inflation is rising, however, it makes things far worse and requires additional sacrifices to make ends meet.”

Data from the Federal Reserve

reveals that on average, Black and Latino households earn about half as much as white households. Families of other ethnic and racial backgrounds — which include Asian families — have lower wealth than white families but higher wealth than Black and La tino families.

That income gap indirectly affects one’s likelihood of experiencing ex treme heat, too. Densely packed cities experience a “surface urban heat is land” effect. A 2021 study published in Nature Communications journal found that Black and Latino residents are far more likely to experience these higher temperatures than white fami lies — which can also impact their energy costs.

So, this begs the question of what families of all backgrounds can do to combat the high energy costs. After a brutal summer, the fall brings some relief for many families looking to cut back on their energy bills. But that relief won’t last long. In fact, the EIA predicts energy prices will remain historically high through

2023, including oil, natural gas, coal, and electricity.

By LendingTree’s assessment, citizens will be shelling out more for heat this winter, too. The half of U.S. households that use natural gas to heat their homes should expect to spend 28% more than last year when the cold hits, according to the EIA. Those households that use heating oil should expect a 27% in crease from last winter, while homes that primarily use electricity and pro pane may pay up to 10% and 5% more, respectively.

While there are not always di rect solutions for such issues, there are things that can be done in the name of ‘symptom management.’ Households are encouraged to revisit budgets, build an emergency fund, or ‘think small’.

“If you haven’t tweaked your bud get since last summer, you should,” Schulz said. “With prices rising ev erywhere and energy costs being no exception, failing to account for those rising prices can lead to

some really unpleasant surprises when those peak winter energy bills come due.”

“You don’t have to adjust your thermostat much at all to reduce your bill,” Schulz says, “Even just lowering it by a degree or two during the win ter can have a real impact.”

LendingTree researchers ana lyzed U.S. Census Bureau Household Pulse Survey data to estimate the per centage of American households that said they reduced or skipped basic expenses to pay an energy bill in the past 12 months.

While also estimating the rate of households that reported being unable to pay at least part of their en ergy bill in the past year, researchers tracked these figures at the national and state levels, and the Household Pulse Survey was fielded from July 27 – August 8, 2022.

Credit: Nearly 34% Sacrificed Basic Expenses To Pay Energy Bill | LendingTree 61% of Americans Who Paid a Bill Late Recently Couldn’t Af ford It | LendingTree. w

“You don’t have to adjust your thermostat much at all to reduce your bill,” Schulz says, “Even just lowering it by a degree or two during the winter can have a real impact.”

Liftoff! NASA’s Artemis I Mega Rocket

Guest Post Sean Potter, NASA

Following a successful launch of NASA’s Space Launch System (SLS), the most powerful rocket in the world, the agency’s Orion spacecraft is on its way to the Moon as part of the Arte mis program. Carrying an uncrewed Orion, SLS lifted off for its flight test debut at 1:47 a.m. EST Wednesday from Launch Pad 39B at NASA’s Kennedy Space Center in Florida.

The launch is the first leg of a mission in which Orion is planned to travel approximately 40,000 miles beyond the Moon and return to Earth over the course of 25.5 days. Known as Artemis I, the mission is a critical part of NASA’s Moon to Mars explo ration approach, in which the agency explores for the benefit of humanity. It’s an important test for the agency before flying astronauts on the Arte mis II mission.

“What an incredible sight to see NASA’s Space Launch System rocket and Orion spacecraft launch together for the first time. This uncrewed flight test will push Orion to the limits in the rigors of deep space, helping us prepare for human exploration on the Moon and, ultimately, Mars,” said NASA Administrator Bill Nelson.

After reaching its initial orbit, Orion deployed its solar arrays and engineers began performing check outs of the spacecraft’s systems. About 1.5 hours into flight, the rocket’s up per stage engine successfully fired for approximately 18 minutes to give Orion the big push needed to send it out of Earth orbit and toward the Moon.

Orion has separated from its up per stage and is on its outbound coast to the Moon powered by its service module, which is the propulsive pow erhouse provided by ESA (European Space Agency) through an interna tional collaboration.

“It’s taken a lot to get here, but Orion is now on its way to the Moon,” said Jim Free, NASA deputy associ ate administrator for the Exploration Systems Development Mission Direc torate. “This successful launch means NASA and our partners are on a path to explore farther in space than ever before for the benefit of humanity.”

Over the next several hours, a series of 10 small science investiga tions and technology demonstrations, called CubeSats, will deploy from a ring that connected the upper stage

Rocket Launches Orion to Moon

NASA / Photos courtesy of NASA

to the spacecraft. Each CubeSat has its own mission that has the potential to fill gaps in our knowledge of the solar system or demonstrate technol ogies that may benefit the design of future missions to explore the Moon and beyond.

Orion’s service module will also perform the first of a series of burns to keep Orion on course toward the Moon approximately eight hours after launch. In the coming days, mission controllers at NASA’s John son Space Center in Houston will conduct additional checkouts and course corrections as needed. Orion is expected to fly by the Moon on Nov. 21, performing a close approach of the lunar surface on its way to a distant retrograde orbit, a highly sta ble orbit thousands of miles beyond the Moon.

“The Space Launch System rocket delivered the power and per formance to send Orion on its way to the Moon,” said Mike Sarafin, Ar temis I mission manager. “With the accomplishment of the first major milestone of the mission, Orion will now embark on the next phase to test its systems and prepare for future mis

sions with astronauts.”

The SLS rocket and Orion space craft arrived at Kennedy’s Launch Pad 39B on Nov. 4 where they rode out Hurricane Nicole. Following the storm, teams conducted thorough as sessments of the rocket, spacecraft, and associated ground systems and confirmed there were no significant impacts from the severe weather.

Engineers previously rolled the rocket back to the Vehicle Assembly Building (VAB) Sept. 26 ahead of Hurricane Ian and after waving off two previous launch attempts Aug. 29 due to a faulty temperature sensor, and Sept. 4 due to a liquid hydrogen leak at an interface between the rocket and mobile launcher. Prior to rolling back to the VAB, teams successfully repaired the leak and demonstrated updated tanking procedures. While in the VAB, teams performed stan dard maintenance to repair minor damage to the foam and cork on the thermal protection system and re charge or replace batteries throughout the system.

Artemis I is supported by thou sands of people around the world, from contractors who built Orion

and SLS, and the ground infrastruc ture needed to launch them, to international and university partners, to small businesses supplying subsys tems and components.

Through Artemis missions,

NASA will land the first woman and the first person of color on the surface of the Moon, paving the way for a long-term lunar presence and serving as a steppingstone for astronauts on the way to Mars. w

Mayor Finley Celebrates Madison in State of the City Address

On Friday, November 4, the bright lights of Toyota Field and the lively sound of the James Clemens High School Jazz Band welcomed lo cal residents to Celebrate Madison, a celebration of Madison’s past, present and future.

Presented by Meta and organized by the Madison Chamber of Com merce and the Celebrate Madison Committee, major sponsors for the event included Huntsville Utilities, which provided the fireworks display; Redstone Federal Credit Union; Flourish; and Torch Technologies.

Silver sponsors were First Hori zon, Hexagon, Huntsville Madison CVB, Industrial Properties of the South, Madison Hospital, Nola VanPeursem Architects, Polaris, The Port of Huntsville, Progress Bank, Rocket City Trash Pandas, and Toyota Manufacturing.

Bronze sponsors were Bank Inde pendent, Investor’s Resource, Rocket City Mom Media, Rosenblum Re alty, Super Duck Car Wash, Synovus Bank, and Virtuous Realty Group.

The event began with a Stu dent and Community Showcase on the Concourse, allowing visitors to explore some of Madison’s local of ferings while enjoying free hot dogs, soft drinks, and ice cream prior to the commencement of the Celebration Program.

Michelle Epling, Executive Di rector of the Madison Chamber, acted as emcee for the event, which was last held in 2020 under the title ‘Connect Madison.’

Following introductions, Madi son Mayor Paul Finley presented his “State of the City” address, begin ning with a look back at the city’s recent past.

“In 2010, the City of Madi son broke ground on three $70 million projects–James Clemens High School, Madison Hospital, and the Shoppes of Madison. The neat thing for our community is all three of those opened on time in 2012, and all three continue to make a monster impact on our communi ty,” Finley said.

Finley noted that two months

after the 2020 Connect Madison cel ebration, Covid hit. “I’ll tell you one thing that it did for me: it solidified my belief and my realization of how important this community is, and when I talk about this community I’m talking about the Tennessee Val ley, in coming together as a group to solve problems and help the commu nity through areas of concern.”

Flnley expressed his admiration of Mayor Battle and his team for the continued awards that the City of Huntsville receives “and especially for being the #1 city in the nation to live in,” as well as Gov ernor Ivey for her support of the area. He also recognized the efforts of the economic devel opment team and the work of Red stone Arsenal: “We all work together to work for this community and I’m proud to be a team member with them.”

“In the City of Madison, we have a mission statement that we try to work on every day: To

provide excellent services through the responsible use of public resources, enhancing the quality of life for our community,” Finley said, emphasiz ing the importance of the cooperative efforts of the Madison Council and his team to make that happen. “It’s a part time job that truly is not part time, it’s full time. And they work hard to make sure that the monies that are invested in our city are spent wisely.”

Finley stated that by this time

next year Town Madison will have double the amount of businesses along with significantly more hous ing. He also noted that the city has a sizable bank balance: “As a matter of fact, currently in our checking ac count–your checking account–there’s $32 million. Now, in fairness there’s about $9 million of that carried over from last year that we were trying to spend or getting ready to spend, but unfortunately couldn’t,” he said.

During his address, Finley high lighted a number of planned road improvement projects, including a planned $6 million renovation of Madison Boulevard from County Line Road to Zierdt Road that will include resurfacing and safety im provements such as the addition of traffic signals.

Previously completed projects include the construction of the Gil lespie and Balch Road roundabout. “What we recognized, and what many of you told us couldn’t hap pen, but we’ve seen it can, is Alabama can make it through a roundabout,” Finley quipped, adding that the en gineering budget includes designs for two additional roundabouts includ ing one planned for the intersection of Burgreen and Brownsferry Roads.

By Dawn Suiter / Photos courtesy of Dawn Suiter / City of Madison Chamber of Commerce

Madison’s budget is based largely on sales tax revenue, which Finley stated has grown by over $12 million over the past three years, enabling numerous improvements to the city.

He also stressed the revitalization of the city’s businesses, drawing at tention to the old Publix shopping center on the north side of the city. “If you’ve been by there in the last couple of days, you’ve seen some thing’s moving in there. As a matter of fact, it’s a place called Floor & Decor,” Finley said, attributing the entrance of this home improvement and decor store into the city as an offshoot of the booming new home construction in the area.

“Right next to it, where the old Books A Million is–a furniture store. That entire shopping center will be revitalized. That’s critical to our city and we continue to do wonderful things for you.”

Madison has grown by almost 13,000 people a decade since the 1980s, with people now moving into the city at the rate of a family per day. Finley attributed this to its high quality of life, citing Money Maga zine’s ranking of Madison as the 12th best city to live in in the nation, its #1 Niche ranking as the best Alabama suburb, and especially its top-ranked schools.

“While we’re absolutely known for education in the City of Madi son, the main thing for us is that we’re now also known as the home of the Rocket City Trash Pandas,” Finley said, adding that it began in 2018 with a vision of bringing mi nor league baseball together with a multi-use facility.

This year marked the Trash Pandas’ first full season of play, which included 69 home games and two playoff games. They led the league in attendance with over 327,000 people coming to games. In addition, they led Minor League Baseball in merchandise sales, with over $4 million in merchandise go ing to every state in the US and multiple countries.

“Rocket City Trash Pandas Base ball is here to stay, and it’s exciting for our community,” Finley said.

Madison Hospital recently cel ebrated its tenth anniversary, with

1400 births so far this year and over 53,000 ER visits. “Madison Hospi tal continues to make a big impact positively for the City of Madison,” Finley said.

Finley also announced four big projects in the works for the city.

The former Three Springs facility is destined to become the Madison Community Center, which will in clude services and programs for the city’s senior citizens, dedicated spac es for the special needs community, organizational and meeting spaces for local nonprofits, and specialty indoor and outdoor spaces available for community use including a ce ramics room, a woodworking room, a game room, and a garden.

Finley revealed that the City of Madison has purchased Sunshine Oaks Farm, a 40-acre former horse farm with pastureland, located adjacent to the Bradford Creek Gre enway. It will be transitioned over the next few years into a multi-use space open to the public and featuring gathering spaces, support structures, a playground, and a disc golf course.

On the Limestone County side of Madison, City Council recently

approved the McKinley Homes proj ect, a 100-acre property that will have approximately 350 units “of all kinds” for sale, as well as 33,000 square feet of commercial retail space directly on Brownsferry.

“Most exciting for Madison residents, especially on the western side, we secured 25 acres of green space that they will donate to the city,” Finley said. “Each time that Madison grows, we want to do it in a smart, controlled way and in a way that benefits our city and will give added homes of quality, retail and commercial space, and in this case, park space.”

The Town Madison area will soon benefit from the collaborative efforts of the City of Madison and Hexagon, who worked together to invest in the critical services and infrastructure necessary for its sus tained growth.

“A lot of that future has to do with public safety and the need that we have for an additional fire sta tion and a police presence here in the south side in the Town Madison area,” Finley said.

Projects planned for Town Madi

son in the near future include a new fire station and police substation, a parking lot that will support overflow parking at the venue, the addition of new field space for adult programs in soccer, softball, and baseball, and the construction of a pickleball complex that can be used for tournaments and daily use.

According to Mayor Finley, the biggest challenge the city has is man aging its rapid growth, a task greatly helped by its focus on safety, health, and infrastructure. “Madison, Ala bama continues to thrive and we continue to be proud of all that we collectively do together,” he said.

That collective effort is enhanced by the city’s dedication to taking care of its employees. For the sixth straight year the city has instituted a step raise as well as a cost of living increase for its employees.

“We’ve also analyzed what we need to do to get better, and as our city grows we must add people in key positions that make the process better,” Finley stated, noting that the city is seeking 14 different positions to support the city’s growing needs. Job listings can be viewed here. w

‘Game Changer’ Rocket SLS Power Behind Artemis Program

As NASA prepared to final ly launch Artemis I after original attempts were foiled in late August and early September by fuel leaks and then Hurricane Ian, participants in the program discussed the mission during the 15th annual Wernher von Braun Symposium at UAH.

The three-day event was hosted by the American Astronautical Soci ety. The symposium theme was “Space at the Table: Collaboration, Coopera tion, and Inclusion.” The conference focused on lunar lander technol ogy, space policy, NASA’s Artemis program, propulsion systems and ex ploration technologies.

“Artemis I – Mission Status” ses sion emcee and local news anchor Steve Johnson opened the questioning of that conference with some humor as he talked to attendees at the Char ger Theater while addressing former shuttle astronaut Doug Hurley, one of eight panelists at the session.

“Anybody who’s seen a shuttle launch – there were two things I thought,’’ Johnson said. “I can’t believe somebody’s on top of that, and I can’t believe somebody did it twice.’’

Hurley, who now is Senior Direc tor Business Development/Propulsion Systems at Northrop Gruman, held up three fingers.

“Three?’’ Johnson replied. “You’re a better man than I thought.’’

The session then turned to busi ness at hand – the Artemis I uncrewed test mission, which launched on No vember 14. The Space Launch System

(SLS), the most powerful rocket NASA has ever created, was to carry the Orion capsule to space for its flight around the moon before returning to orbit and splashing down in the Pacific Ocean Nov. 9.

Hurley explained why the test mis sion was so important.

“We’ve got to make sure the hard ware is ready to go when we put crew on it for Artemis II,’’ he said. “For me, that’s extremely important. We weren’t able to do that with the shuttle if you remember. When John (Young) and Crip (Robert Crippen) got on that ve hicle it was the first time we (put into orbit). And there were reasons we had to do it that way.

“With this vehicle, we’re able to do an end-to-end test flight and I think it’s hugely important to work the entire

profile so when we put our astronauts on board Artemis II we have the ulti mate confidence … this is a great way to do testing and build up approach.’’

As an aside, Hurley said riding atop a roaring rocket after launch as it heads toward orbit is like “riding a 1950s jeep as fast as you can over a gravel road.’’

Fuel issues that halted the origi nal launch attempts have been settled, and Artemis teams were eager for the planned Nov. 14 liftoff.

“Making history is a series of huge efforts and overcoming failures,’’ said Jeremy Parsons, Deputy Exploration Ground Systems Program, NASA.

Howard Hu, Manager/Space Launch Systems at NASA’s Johnson Space Center, said a daytime launch was preferred over a night launch for the test flight so the Artemis team

By Mike Easterling /

/ UAH

could better view such things as booster separation.

As for opting to launch during the day instead of at night, he said, “There will be a very bright light going up’’ for those in attendance.

“This is a historic mission,’’ Hu added. “Artemis is our first step toward long-term lunar exploration.’’

A day earlier Judy Singer, Man ager of NASA’s Marshall Space Flight Center, was part of the opening program and explained what the sym posium at UAH meant to the space travel industry.

“It gives us an opportunity to speak with our industry partners, our academics and to a lot of government partners on space exploration and sci ence and where we’re going from here,” she said during interviews following

Photos by Mike Easterling

a networking breakfast that kicked off the agenda.

Artemis II is planned to have four crew members and will travel farther into space than ever before and is scheduled for a 2024 launch. Artemis III will be a crewed mission that will put astronauts on the moon for the first time since Apollo 17 in 1972.

The plan is to have the first wom an and the first person of color to set foot on the lunar surface. Singer said diversity is important to the future of space exploration.

“As we’re trying to do more and more complex missions, the ability to have that cooperation and that col laboration (with minorities) and that inclusion and diversity at the table makes us stronger to be able to go where we need to go,’’ she said. “And that’s part of what NASA and Marshall Space Flight Center do.

“We like to do the impossible, but with it we have to have the right skills, the right people and the brightest ideas to make it happen.’’

Pamela Melroy, Deputy Adminis trator at NASA, told the opening-day morning gathering that Artemis could motivate newcomers to develop an in terest in space.

“We know when the first woman and the first person of color sets foot on the surface of the moon what that’s going to mean to that generation,’’ she said. “If I was inspired by the Apollo Program, then think about what’s go ing to happen, the tidal wave that is going to hit our industry when the next generation is inspired by that.’’

The blueprint for the future in cludes a sustainable base on the moon and the current ultimate goal – a manned trip to Mars. Hu said “testing

for Artemis II and III is being worked on’’ and welding has been done on Ar temis IV. “All are in production.’’

Space travel veteran John Honeycutt, Manager/Space Launch Systems Program at NASA, said the SLS rocket will write its personal his tory just as the Saturn V did when it first took man to the moon.

Honeycutt, who earned an en gineering degree at UAH in 1990, worked nine years as a contractor in support of the Space Shuttle Program before landing with NASA at Marshall Space Flight Center in 1999.

“I’ve got a lot of thoughts about what the legacy of the rocket will be and what the future missions are going to look like,’’ he said. “Kind of looking back, we always like to talk about how our success has been built on the shoul ders of giants, from the Space Shuttle Program, the Saturn Program, Apollo and Gemini.

“I really think SLS will earn her own place in history. That’s probably not for me to decide, but for the Ameri can public and the taxpayers and those who support us to decide once they see and realize the capability of this rocket.’’

The Orion capsule, which will contain astronauts on future missions, will eventually enter the spotlight. But, much like the Saturn V, the SLS rocket will no doubt secure its place in space lore.

“This rocket was built to, really, get us back in the business of flying into deep space and carrying humans into deep space and back to the moon and on to Mars,’’ Honeycutt said. “And it’ll be a rocket with the capability to carry huge payloads into space.

“This rocket is going to be a game changer for this country.’’ w

Understanding Key Differences in Banks vs Credit Unions

As a business owner, it’s impera tive to have a financial account to manage your business-related in come and expenses that is separate from your personal account. Some business owners choose the same institution where they manage their personal finances, but it’s impor tant to explore all options and this includes the various Huntsville city credit unions.

Before you make your deci sion, it’s important to understand what banks and credit unions offer their customers and how that aligns with your business’s financial goals and circumstances. This resource ar ticle aims to lay out some of the key differences between credit unions and banks.

The biggest difference between a bank and a credit union is essentially its profit status. Banks are for-profit, either privately owned or publicly traded, while credit unions are non profit institutions completely owned by its members. This for-profit vs. not-for-profit contrast is the driving force behind most differences.

A credit union is owned by its members, and is actually set up the same way as a cooperative. Credit unions typically open mem bership to individuals who share a common bond, such as the industry they are employed with Redstone Federal Credit Union. Credit unions are also generally exempt from vari ous federal taxes, and some credit unions even receive subsidies from the organizations that they are affili ated with.

It is the credit union’s mission to provide its members with the best terms it can afford for their finan cial products as opposed to a banks mission to make as much money as possible for shareholders. This means members generally get lower rates on loans, pay fewer (and lower) fees and earn higher APYs on savings products than bank customers do.

We’ve included comparisons on national average rates for 10 com mon loan and deposit products for banks and credit unions. This in

formation comes from the National Credit Union Administration and the data is sourced from S&P Global Market Intelligence.

Advantages of Banks Over Credit Unions:

• More financial products and services: Most banks provide services that aren’t found at credit unions such as invest ment accounts and financial advisory services in addition to standard banking products.

• Physical branches and ATMs: One of the more obvious draws of banks is the convenience of large numbers of physical loca tions and ATMs. While most banking is done online in 2022, having ease of access to more lo cations is always beneficial.

Advantages of Credit Unions

Over Banks:

• Fees and account flexibility: Credit unions will usually have lower costs and more flexibility than banks. This includes more accounts that don’t have month ly maintenance fees attached to them and do not charge money for overdraft protection.

• Better rates on savings accounts and loans: Credit unions offer higher interest rates on savings accounts and lower rates on loans. Higher interest rates on bank accounts help your money grow faster, while lower rates on loans make it cheaper to

borrow money.

One difference about credit unions is that they’re not insured by the Federal Deposit Insurance Cor poration, or FDIC. However, even though credit unions are not subject to FDIC insurance, National Credit Union Administration (NCUA) insures deposits in most reputable credit union accounts.

Both FDIC and NCUA insur ance guarantee up to $250,000 for account holders if the specified in stitution were to become insolvent.

All federal credit unions and most state credit unions are insured by the NCUA. At the NCUA website, you can see if your credit union is covered, and NCUA-insured credit unions always prominently display their insurance status on signage in their branches.

Consumer Satisfaction Myth?

One common notion about credit unions is that they offer bet ter, more specific customer service. However, some data shows that banks have surpassed credit unions in overall consumer satisfaction.

Credit unions continue to lose ground with consumers, according to the American Customer Satis faction Index’s most recent finance study. Credit unions have scored behind banks for four straight years. Banks now score higher than credit unions in nearly every service cat egory as rated by U.S. consumers, according to this year’s survey. On

By Noah Logan

the ACSI’s 100-point scale, credit unions now trail banks by three percentage points. Banks’ overall score (78) has remained relatively unchanged over the last four ACSI reports while the credit unions’ score has fallen to 75.

The 2021-2022 study, which was based on more than 13,500 custom er interviews, covers banks, credit unions, financial advisers and online investment. According to research ers, rapid membership growth fueled by the pandemic and ongoing indus try consolidation could be affecting credit union customers, though the credit union industry’s tradi tional area of strength in the annual survey—in-person service—has re mained consistent.

National banks climbed 1% to an ACSI score of 77, followed by super regional banks, up one percentage point to 76. Citibank places first among national banks af ter inching up one percentage point to 78. Bank of America rose one percentage point to 77 to meet Chase for second place. Wells Fargo took last place for the sixth consecu tive year despite advancing three percentage points to 76. Capital One expanded its lead among super regional banks, surging four per centage points to 81. PNC Bank rose three percentage points to 78, followed by U.S. Bank, which rose three points to 77.

For the fourth year in a row, Forbes recognized Redstone Federal Credit Union as a top credit union in the state after reviewing member surveys and overall standings.

Forbes partnered with market research firm Statista to produce the annual ranking of the Best Credit Unions in Each State for 2022. Banks and Credit Unions were scored in sub-categories including trust, member and branch services, digital services, financial advice, and terms and con ditions. Only 2.7% of all banks and 3.4% of all credit unions made its list, according to an announcement from Forbes.

Third Quarter Report Quantifies Impact of Inflation and Interest

The Huntsville Area Associa tion of Realtors has released its report, compiled by faculty of UAH’s College of Business, on the state of Madison County’s residential real estate market for 3Q 2022.

The statistics reported shed more light on shifts that we’ve been tracking, putting them into context with both the previous quarter and the third quarter of last year. For instance, the inven tory of homes in the region have increased 42% since the end of 2Q 2022, and 95% relative to 3Q 2021. A majority of the homes listed are in the $350K - $500K price range, which neatly coin cides with the range with the most sales. Supply and demand seem to be evening out, as, with the population of Madison County growing to more than 400,000 people, demand for housing will continue to support construction work for some time. With this report, the challenge now appears to be managing the 8.2% rate of inflation alongside mortgage rates over 6%.

The median price for a home in Madison County for 3Q 2022

was $336K, which, while 14% higher than 3Q 2021, is a slight dip relative to 2Q 2022, illustrat ing the abrupt check on the rising housing prices. 27% of homes sold in 3Q 2022 sold for below the list price, a percentage that is up from 15% the previous quarter.

Price isn’t the only aspect of the sellers’ side to have its momen tum slowed, as houses spent an average of 12 days on the market, an increase of 4 days on average. Moreover, the total number of houses sold for the third quarter of 2022 was the lowest third quarter amount since 2018.

This report confirms the trends that we’ve been tracking, while demonstrating the scale of these movements. The sharp rise in in terest rates were certainly abrupt, but given how the population of

By Marie Johnson / Infographics courtesy of HAAR / Valley MLS

Madison County continues to grow, checking inflation with that shocking slap to the market may well be what made the difference between high inflation and a run

away lurch that would have caused grievous issues down the line.

The Huntsville Business Jour nal will continue to keep its readers apprised of market conditions. w

The Historic Context of Mortgage Rates

The national real estate market has reeled at the sharp increase in mortgage rates, as 30-year fixed mortgage rates have topped 7% for the first time in over twenty years. Sounds bad, and it has many won dering if numbers will continue to get worse.

Freddie Mac has compiled the average rates on mortgages, orga nized by month and year, and from 30-year fixed rates, 15-year fixed rates, and 5-year adjustable rates. The first thing that jumps out at even a casual glance at these tables is just how low the rates have been for the past fourteen years.

“The Federal Reserve made the decision based on what was happening in the world”

The annual rate for a 30-year fixed mortgage was at 6.03%, and then, in the wake of the economic mess that was 2008, the annual rate steadily decreased until it hovered around 4%, with only a minor spike to 4.54% in 2018.

For additional context, after the 1981 housing crash mortgage rates peaked at a truly astonishing 18% during parts of that year, as a result of the Federal Reserve fight ing the inflation that characterized the 1970’s economy. After that peak, the mortgage rates followed a similar pattern to the post-2008 trend, with the rates declining be fore leveling out during the 1990’s, this time at around the 7-8% mark, which is where that 2002, 20-year mark for the last time the rate was over 7% derives.

In terms of historical con text, mortgage rates have actually been quite low, and for a good long while to boot. In 2020, the rate dipped below 3%. But then Covid happened, and disrupted the market conditions that made such rates feasible.

“The Federal Reserve made the decision based on what was happening in the world,” Mela nie Mullins, Affiliate Director at the Huntsville Area Association of Realtors, told the HBJ. “Low in flation led to lower rates, and then we had Covid. Interest rates are ris

“Low inflation led to lower rates, and then we had Covid. Interest rates are rising right now because inflation is surging –not just here, but internationally as well. I would expect growth to slow as the Fed continues to raise rates.”

ing right now because inflation is surging – not just here, but inter nationally as well. I would expect growth to slow as the Fed contin ues to raise rates.”

With that said, a slower rate

By Marie Johnson

of growth may not, on the whole, be such a terrible thing. The hous ing market leading up to the 2008 crash was a wild, largely unregulat ed frenzy, and when it finally broke apart, it took the global economy with it. Housing prices doubling in two years is neither normal nor sustainable. As painful as it may be, it is better to take a sharp hit now, instead of facing an unmitigated fi nancial catastrophe later.

That’s a hard sell to a public that is prone to panic at the first sign of trouble, and that demands that everything be sunshine and peaches for forever and ever. Fortu nately, I’m not running for office, so I can be upfront about this sort of thing.

Fortunately, Huntsville’s posi tion as a hub for Federal spending provides some degree – emphasis on ‘some degree’ – of insulation to a likely recession, as the need for technicians to service the gov ernment’s needs, and the need for other industries to service the needs of said technicians, results in a continued demand for housing in and around Huntsville. This is not inexhaustible, nor is it total, but it does put Huntsville in a bet ter position relative to a lot of cities in the United States.

So yes, the waters are choppy, and storm clouds are gathering, but Huntsville does have the tools to weather the storm. w

RECOGNITIONS

Huntsville Business Journal Welcomes Newest

Guest Contributing Writer

The Huntsville Business Journal is ex cited to announce the addition of a new bi-weekly column from Alexander Duck, the journal’s newest guest contributing au thor.

Alex’s background focuses on educational and professional devel opment. His bi-weekly article will utilize this past experience to bring forth useful tools that managers, employers, and employees alike can utilize to enhance workplace success.

His articles will focus on summarizing the lessons learned from his past experiences, and providing insightful articles and resources from all angles of Huntsville business. Primary article topics will include managing and developing soft skills, marketing, professional develop ment, effective management systems, and workplace culture, to name a few.

“My goal for the audience of the Huntsville Business Journal will be to provide articles, from my past experiences, that really help take advantage of the unique culture present in Huntsville. The city is a very special place for businesses to start and to grow. We are such an interconnected community, and I feel like my articles can be a part of that same conversation,” said Alex in an interview with HBJ.

ServisFirst Bank Huntsville Announces New Commercial Banking Officer

ServisFirst Bank, a subsidiary of Servis First Bancshares (NYSE:SFBS), announces the addition of Michael Bishop to ServisFirst Bank Huntsville as Commercial Banking Of ficer.

“We are proud to welcome Michael Bishop to our Huntsville team,” states Andy Kattos, ServisFirst Bank Huntsville Regional CEO. “Mi chael’s impressive experience and expertise will bring great value to our team and enable us to continue serving our clients across the North Alabama market well.”

Michael Bishop, Commercial Banking Officer

Michael Bishop joins ServisFirst Bank Huntsville as a Commercial Banking Officer with almost a decade of experience. Before coming to ServisFirst Bank, Bishop served as a Marketing Representative at Feder ated Insurance, where he gained valuable experience in client retention, new account acquisition, and cross selling. Bishop has experience in team leadership, strategic planning, communication and account man agement. He is skilled at partnering with business owners and key stakeholders in problem solving and strategic planning.

Bishop obtained his Bachelor of Science in Business Management from Jacksonville State University, where he competed for four years as an All-American on the university’s Division I baseball team, graduating in 2014.

Innovate Alabama Taps

Innovate Alabama board members came together to vote in the organization’s founding CEO, Cynthia Crutchfield. An Alabama na tive, Crutchfield brings 40 years of experience to the role where she will help innovators grow roots across the state by spearheading Innovate Alabama’s programs, statewide engagement and mission of building a robust, inclusive economy through entrepreneurship and innovation.

Hailing from Montgomery, Crutchfield received an undergraduate degree in computer science from Alabama A&M University, one of the state’s 14 HBCUs. She then spent the next 18 years as a civil servant supporting the Departments of the Air Force and Navy followed by multiple information technology-focused leadership roles before founding her own IT services and consulting company in 2021, Crutchfield Management Consulting.

Crutchfield is charged with overall strategy and operations for Innovate Alabama and will collaborate with the board of directors to drive forward the organization’s mission, execute programs, advocate for policy solutions and engage with innovation ecosystem stakeholders in every corner of the state.

“Over the past four months, the CEO search working group has led efforts to select a CEO to lead Innovate Alabama into our next chapter,” said Rich Bielen, Innovate Alabama board member and CEO search working group member. “After learning about Cynthia’s breadth of knowledge and passion for our state’s entrepreneurial and innovation landscape, we believe she is a stellar fit for this role.”

Alabama Native to Serve as Organization’s Founding CEO

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