Initiatives magazine, October 2002

october 2002 review

ini tiatives huntsville madison county

chamber of commerc e

Cummings Research Park Taking Business to a Higher Level CRP: Then and Now Park Place

05

11

Research is Our Middle Name

19

ini tiatives H u n t sv i l le / Ma d is o n Co u n ty • C h a mb e r of Co m m e r c e

f eat u re s cover

Cummings Research Park

05

Then and Now

Park Place:

11

Advancing Technology Across the Board

Research is our Middle Name

19

Cummings Research Park Map

26

Giving Us the EDGE

29

de v el o p m e n t s Business Parks Cover design by Huntsville/Madison County Chamber of Commerce Publications Department.

s t a ff

Publication Manager

Member Developments

15

Economic Development Highlights

21

Economic Indicators

22

Economy-at-a-Glance

23

Ribbon Cuttings

Rikki Thomas

Managing Editor

Barbara Nash, APR

Contributing Editor

Joy Dawes Ken Smith

Contributing Writers

Shannon Belew Kate Gray Alex Hardy Mike Kelley

Account Executive

R.D. Patterson

Publisher

Jeff Thompson

mission

The mission of the Chamber of Commerce of Huntsville/Madison County is to prepare, develop and promote our community for ecomonic growth.

contact

Chamber of Commerce Huntsville/Madison County P.O. Box 408 Huntsville, AL 35804-0408 256.535.2000 www.initiativesreview.com

President/CEO

Brian Hilson

Permission to publish any part of Initiatives Review is hereby granted exclusively to any non-profit institution and to any publisher for broadcast or publication to the general public. Credit “ Initiatives Review, a Publication of the Chamber of Commerce of Huntsville / Madison County.”

03 1 In i t i a t i ves October 2002

Cummings Research Park Then and Now A world-class research park. Home to scores of high-technology firms. The economic gyroscope of North Alabama. All are descriptive of Huntsville's Cummings Research Park.

First time visitors to Huntsville are often amazed to see the miles of corporate campus structures and grounds that are home to companies such as ADTRAN, Lockheed-Martin, Teledyne Brown Engineering, Northrop Grumman, and Dynetics. Some react as Bruce Peifer, Vice President for Development at Oakwood College, did when he first drove through the area after moving to Huntsville a few years ago from southern California. “I drove through the area and couldn't believe my eyes. It looks just like the technology campuses I’m used to seeing in California.”

Comparisons to Silicon Valley, Research Triangle Park in North Carolina, and I-93 north of Boston are frequent. As the nation’s third oldest and second largest research park, Cummings Research Park extends its influence across the nation and around the world. CRP firms such as ADTRAN and Avocent Corporation produce telephone switching and computer equipment sold the world over, while missile research for the

Army’s worldwide commitments is conducted.

Currently, more than 200 firms and institutions occupy space in the 3,800 acre park wedged between UAH, Redstone Arsenal, and the City of Madison. More than 22,000 employees work here – many in aerospace firms that were among the park’s original occupants.

Thousands of CRP employees work in engineering, research, and design.

They develop new ideas, new products, weapons for the Army, and also provide technical solutions in telecommunications, transportation, and global defense. Engineers, scientists, technicians, computer specialists – it’s a workforce to be envied.

A Visionary Idea

Joe Moquin, retired President of Teledyne Brown Engineering, perhaps had an inkling of all this in the early ‘60s when he urged the City of Huntsville to establish a new research park zoning designation. Shortly afterward, in 1962, the city zoned the first 3,000 acres as a research park district.

Moquin, who still serves as a CRP Board Member, recognized the desire for suburban office space in a campus setting.

A public-private partnership of this type was an innovative idea at that time. But Moquin brought Brown Engineering, which later became Teledyne Brown, into the new park as the first private occupant. Teledyne has continued its leading role in the park’s development, and in 1973, Huntsville Research Park was renamed Cummings Research Park in honor of Milton K. Cummings, a former CEO of Brown Engineering.

The City of Huntsville’s support for the park has continued and grown, as has the park itself. In 1982, the City purchased an 800-acre parcel of land on the park’s west side to add to CRP. Since then, CRP West has become home to firms such as SAIC, Colsa Corporation, ADTRAN, Camber Corporation, and Dynetics.

State Support

CRP Director Alex Hardy says that state officials in Montgomery are In i t i a t i ves October 2002

05 1

Quick Facts

CRP: Then and Now . . . continued from page 05

acutely aware of CRP’s impact on the state of Alabama, and the state has long provided incentives to technology firms of the sort that find CRP attractive. In addition to such standing incentives as corporate income tax credits and tax abatements, the state provided funds in 2001 to underwrite a major marketing campaign that resulted in major market exposure for the park around the world.

Multiple stories on CNN, National Public Radio, and German Television portrayed powerful images of the Huntsville/Madison County region and the technological advancements being made here. Newspapers in the U.S., Germany, Japan, France, Korea, and England all carried stories describing extensive successes of companies in CRP. Despite the economic slump that has depressed growth in other areas, CRP continues to attract new tenants.

Eight new buildings are currently under construction in the park – among them new corporate headquarters for Aegis Corporation, Davidson Technologies, Shearwater Corporation, Mevatec Corporation, and CST. The 80,000 square foot laboratory annex to the National Space Science and Technology Center on Sparkman Drive is nearing completion.

A Master Plan was launched in 1982 to guide the park’s future development.

The pleasing aesthetic appearance of the park today, with lakes, consistent landscape themes, and wide, curving roads, resulted in large part from that planning. In 1997, CRP was honored by the Association of University Research Parks as the Most Outstanding Research/Science Park in the world.

New Commercial Center

That 1982 Master Plan envisioned more than just office buildings. Also planned was a commercial center – a separate area of restaurants, service establishments, hotels, banks, even residential units, to serve the outside community as well as the park’s residents. After 20 years, that commer-

Profile of Cummings Research Park Electronics Wholesale - 6% • Peripherals • Electronic Parts • Semiconductors

Other - 2%

Services - 67%

• Finance • Public Admin • Agriculture

• Engineering •R&D • Programming • Systems Design • Education

Product Dev - 25% • Telecom • Electronics • Guided Missiles • Space Vehicles • Instruments

Cummings Research Park Rankings #1 Science Park in the USA Turnberry Consulting, London, England June 2002.

#2 Research Park in the USA Assoc. of University Research Parks (AURP)

#4 Science Park in the World Assoc. of University Research Parks (AURP)

Students in UAH research laborator y.

cial center is close to becoming a reality on a 100-acre tract at the southeast corner of Old Madison Pike and Research Park Boulevard.

“The park is now planned as a true mixed-use development,” Hardy says.

“The plan has expanded beyond the original intent to include a service center to serve the park.” The CRP Board is currently seeking a master developer for the area.

UAH: Generator of Technology Graduates

The University of Alabama in Huntsville plays a key role in the CityState-Educational support to CRP. UAH’s nationally-recognized and

Fortune 500 Employers in Cummings Research Park Arrow Electronics, Inc. - Melville, NY AT&T - Vienna, VA Avnet, Inc. - Phoenix, AZ BellSouth Corp. - Atlanta, GA The Boeing Company - Chicago, IL Computer Sciences Corp. - El Segundo, CA Delta Air Lines - Atlanta, GA DuPont - Des Moine, IA EDS - Plano, TX General Dynamics - Scottsdale, AZ Hewlett-Packard Company - Palo Alto, CA Lockheed Martin Corp. - Bethesda, MD Motorola, Inc. - Austin, TX Northrop Grumman Corp. - Los Angeles, CA Raytheon Company - Lexington, MA SAIC - San Diego, CA TRW, Inc. - Cleveland, OH United Technologies Corp. - Hartford, CT WorldCom, Inc. - Clinton, MS Xerox Corp. - Stamford, CT 07 1 In i t i a t i ves October 2002

BUILT TO BUILD YOUR BUSINESS

CRP: Then and Now . . . continued from page 07

accredited engineering programs have since 1979 supplied hundreds of technology graduates to CRP firms.

Of prime importance is the University’s co-op program. In a typical year, says UAH Co-operative Education Director Suzanne Norris, more than 300 students will be employed in co-operative work/education programs – the vast majority with CRP firms. Hundreds of current employees in Cummings Research Park have gotten a leg up on their careers through the program, Norris says.

“It’s like insurance for both the employer and the student,” she explains. “The benefit of going through a structured program is you have these check points to make sure the student is progressing.”

The UAH Co-op program has been especially valuable to large employees such as ADTRAN, Teledyne Brown, and Dynetics.

But small firms in the research park also participate. “Employers sometimes think they have to be big. But we’ve worked with many smaller firms. It’s exciting to see a company of 20 or 30 grow to be a company of hundreds,” says Norris.

Seasoned and established, a force with worldwide influence, CRP celebrates its 40th anniversary this year. Mayor Loretta Spencer, who as former Chairman of the City Planning Commission has been involved for years in the park’s development, considers CRP a Huntsville crown jewel.

“This is an important time for both reflection and celebration of all that has been accomplished there over the past 40 years.

The park has been a great investment for us, and its presence will continue to shape Huntsville’s identity for years to come,” says the Mayor.

A variety of properties to choose from in Huntsville and in other key cities across the Sunbelt. For more information call Kyle Collins or Randy Thomas at 256.533.0035 or visit colonialprop.com.

– Mike Kelley

09 1 In i t i a t i ves October 2002

Park Place:

Advancing Technology Across the Board

Business parks. Similar industries.

Successful and recognized.

The communities of Huntsville/ Madison County have invested more than four decades of effort and worked jointly to help ensure the continued economic success of the industries calling this area home. The reward of those combined efforts is the ability to boast about successful business parks, providing resources to companies of all sizes with both research and industrial initiatives.

All of the parks are thriving entities, each with its own unique features and amenities designed to target similar industries and spur growth. “One of the advantages of being in a business park is that it allows companies to locate in a place with similar neighbors, and the necessary infrastructure is already in place,” explains Steve Finnell, Director of Industrial Development for the Huntsville/ Madison County Chamber of Commerce. “This also gives the companies a needed synergy.” For instance, two of the parks, Cummings Research and Chase Industrial, have formal boards of directors to ensure that “synergy” is welldirected. The boards also help preserve the character and original intent of their

respective parks, and often help garner national recognition.

Cummings Research Park (CRP) certainly qualifies as the area’s most recognized business park. But it’s not the only business park in the area that is getting attention.

Thornton Research Park, the only other park zoned for research applications, is quickly growing, and is intended to complement its neighboring CRP. Owned by the University of Alabama in Huntsville Foundation, the young park

offers more than 350 acres for development and is conveniently located close to Redstone Arsenal’s U.S. Army Aviation and Missile Command and NASA’s Marshall Space Flight Center.

The Foundation also owns Lowe Industrial Park which is zoned for planned industrial development. It is well estab lished with companies such as Intergraph Corporation, Goodyear/Dunlop Tire North America, Ltd., and Engelhard Corporation. It is still one of the most cost-competitive parks. It is located close to Huntsville International Airport and the new Madison Research Park. This park has limited acreage available, but does offer buildings for sale and lease.

The build-to-suit option is a popular development strategy offered by several of the privately owned parks, including SouthPoint Industrial and Progress Park, both with easy access to I-565. Location was impor tant to CTA, Inc., a Progress Park resident specializing in automation and robotic manufacturing. In addition to the proximity to the airport, the property is also centrally located between Huntsville and Decatur. “And the industrial park covenants are similar to a housing subdivision,” explains CTA president, David Henry, “so that you know who the neighbors will be and what their facilities will be like.”

11 1 In i t i a t i ves October 2002

Flight and Flexibility Park Place . . . continued from page 11

Toyota Motor Manufacturing North America, Inc. took advantage of the many amenities offered by an industrial park, and recently shifted the national spotlight to North Huntsville Industrial Park.

Barbara McDaniel, Toyota External Affairs Manager, says there was no single reason Toyota chose the location. “It was an ideal mix of a lot of factors, including location and the proximity to the interstate.” The park provided easy access to a good highway system for transportation of the finished engines – an important component for the manufacturing facility.

The company purchased all available land in the park (including options on acreage for future development), but the City of Huntsville has acquired more land to expand the park.

Although much smaller, Gateway Industrial Park is just outside the Foreign Trade Zone No. 83 but offers a very affordable price per acre. Zoned planned industrial, it’s a premium alternative with approximately 800 acres still available.

And while Triana Industrial Park also offers proximity to the airport, it is the most price-competitive industrial park in Madison County at $15,000 per acre.

This light industrial zoning caters primarily to contract manufacturing companies.

On the northeast side of Huntsville, Chase Industrial, a county-owned park, has witnessed explosive growth. With planned industrial zoning status, this is one of the most diverse parks hosting companies like PPG Industries, CINRAM, Inc. – a manufacturer of prerecorded multimedia products, multiple plastics companies, and even a flag manufacturer. “This park offers access to a good work force, and the retail side is really developing,” says Finnell. Averaging

Jetplex Industrial Park Sprawling across 2,370 acres, Huntsville's Jetplex Industrial Park is home for 60+ local companies. Many of the park's tenants are involved in manufacturing products that rely on timely and costeffective import/export shipping, and enjoy

$22,500 an acre, he notes there are only 40 of the original 1,500 acres still available.

Chelsea Industrial Park offers lots that are less than the typical four-acre minimum. The only park south of Governor’s Drive, it’s located on the eastern side of Redstone Arsenal and offers an affordable solution to companies such as Green Mountain Soap, Parker Hannifin and BFI. It also boasts the only steam-generating facility, equipped to supply steam to park residents for use in production, heating and cooling.

Finnell is quick to point out there are many industrial companies not located in one of the area’s many business parks.

The Chamber of Commerce actively markets all the parks, either to local industries ready to expand or to companies relocating from out of state. Finnell says he is dedicated to showing every park to help find the right match for a company. “With so many diverse parks, we truly have something for everyone.”

Different parks for different needs. But all with superb amenities to help any business succeed.

– Shannon Belew

a combination of amenities associated with a world-class industrial area.

Since transportation issues are often key determining factors when choosing a location, Jetplex Industrial Park excels in providing a variety of opportunities for varied modes of transporting products in and out of the country. The industrial park offers its companies direct runway access, a U.S. Customs Port of Entr y, and on-site U.S. Customs Officials and Brokers. Another key advantage of the location is Foreign Trade Zone No. 83.

Many of the park's companies enjoy the benefits of having their own buildings, while other companies can occupy multi-tenant buildings zoned airport industrial. The flexibility in facility possibilities is just another added bonus to locating in Jetplex Industrial Park.

Being located adjacent to the Huntsville International Airport and the Intermodal Center affords Jetplex companies convenient and cost-effective access to truck, rail, or air cargo transportation. World-class facilities in a world-class business park. Jetplex Industrial Park – Huntsville, Alabama.

13 1 In i t i a t i ves October 2002

Member Developments

Huntsville Hospital Tram

Qdoba Mexican Restaurant

Celebrated the opening of the new tram system for staff, patients and visitors.

June 19, 2002

Celebrated the grand opening for a new restaurant at 4800 Whitesburg Drive.

July 12, 2002

All Points Logistics

C & M Consulting

Celebrated the opening of the new office at 9694 Madison Blvd., Suite B-11.

July 31, 2002

Celebrated the opening of the new consulting firm at 3809 Sullivan Street.

July 8, 2002

Interior Market Place

Bonnie Hulcher, CPA

Celebrated the opening of the new interior design mall at 5732 Hwy 431 South.

Celebrated the opening of a new accounting firm.

June 6, 2002

July 30, 2002

15 1 In i t i a t i ves October 2002

Research is Our Middle Name Redefining Technology Standards On any given day, a drive through Cummings Research Park’s tree-lined streets might give little indication of the ground-breaking research that is occurring beyond the walls of every building. But in the forty years since 1962, research is exactly what has been going on in the prestigious park. Forty years of inno vation, 40 years of contribution to Alabama, and 40 years of influence on virtually every

companies conduct research and make advances in such fields as aerospace, defense, biomedical, telecommunications, electronics, and multiple computer disci plines from hardware and software, to Internet. According to CRP Director Alex Hardy, the close proximity of these companies helps to increase the opportunities for breakthrough technologies – yet another benefit of residency in CRP.

facet of technology worldwide.

Telecommunications

Webster’s dictionary defines research as, “... a studious inquiry or examination, especially investigation or experimentation aimed at the discovery and interpretation of facts, revision of accepted theories or laws in the light of new facts, or practical application of such new or revised theories or laws”.

And research is what it is all about. Of the 220 companies who conduct business in CRP, more than 40 different high-tech fields are represented there. Tenant

ADTRAN, BellSouth, Motorola, Nokia, Scientific Atlanta, Verilink, and others are pushing the industry toward new telecom technologies. These technologies include transforming analog data to digital format, new management systems for broadband DSL, and much more. For instance, ADTRAN played a lead role in a European standards committee to help define standards and product protocol for high speed, DSL service over copper wiring. Setting this standard was significant to the future of high speed data services worldwide, as many countries have yet to adopt specific standards that allow for congruency in data transmissions. And Scientific-Atlanta is developing products and systems that are at the very heart of the convergence of the PC, TV, and telephone. Scientific-Atlanta’s research provides for advanced Internetbased applications to be deployed by cable operators. Supporting critical voice-overIP (VOIP), this technology will allow telephone services to be delivered through cable networks. Technology that boosts communications capabilities.

Aerospace & Defense Developing enhanced technology for military applications represents a substantial portion of daily activity in CRP. Companies such as Boeing-Sikorsky, CAS, COLSA, Miltec, Motorola, Northrop Grumman, Raytheon, SAIC, SPARTA, Jacobs Sverdrup, Time Domain, TRW, United Technologies, and dozens of other companies are developing and enhancing some of the most advanced weapons systems in the world. Technology that ensures our safety and helps to preserve democracy.

Biotechnology Shearwater Corporation, a recent addition to CRP, is increasing effectiveness of and reducing dosage requirements of current medicines through partnerships with pharmaceuticals such as Amgen, Roche, Pharmacia, DuPont, and others.

And the National Space Science and Technology Center is pioneering research in the life sciences field through use of microgravity research during NASA shuttle flights.

Technology that helps to move medical advancements to a higher level.

19 1 In i t i a t i ves October 2002

Economic Development Highlights

Research iis Our Middle Name . . . continued from page 19

Electronics & Optics Optics research at the University of Alabama in Huntsville makes the area one of the top three optics centers in the United States. UAH is also the only university in America with an accredited optical engineering degree. Several companies are engaged in joint research projects with UAH, including space, military, and wide industrial uses. Technology that breaks through more barriers.

Advanced Computer & Internet Applications AZ Technology has developed a suite of collaboration tools designed for concurrent use across the Internet.

Simplifying access to the International Space Station is one exciting application of their technology, as it allows researchers to access and interact directly with research projects on board the Space Station, providing vast improvements over the complex and expensive system of voice loops, specialized key sets, and leasing of direct communication lines.

In addition to ground-breaking research in optics, the University of

Alabama in Huntsville is also involved in numerous Internet-based projects, including the TeraGrid project, a longterm effort to build and deploy the world’s largest, fastest, most comprehensive, distributed infrastructure for open scientific research. This network will ultimately operate at speeds up to 50-80 gigabits per second.

PowerComm Systems has developed a way to deliver broadband Internet access across existing electrical power lines.

This technology will enhance the use of the same electrical lines that currently serve to deliver power for street lights, homes, and businesses, by pr oviding electric utility companies with the ability to provide two-way, multi-megabit, data, voice, and video services – to any electrical customer, urban or rural, within or beyond the current reach of cable, DSL, and other high-speed access services. In other words, Internet access to virtually every home in America with a power outlet. Technology transmissions that move at higher speeds than ever before.

CRP is home to all of this research and more. During the past few years, many companies have either built new facilities or moved existing facilities into the Park. These additions, along with the eight buildings currently under construction, further secure CRP’s role as the 2 nd largest research park in the country and the 4 th largest in the world.

Research is what it’s all about, and research unquestionably rules the day for the companies residing in the worldfamous Cummings Research Park.

– Kate Gray

Mevatec Plans New Building Mevatec Corporation, in conjunction with Samples Properties, has begun construction of a new 50,000 square foot building in Cummings Research Park. The building, located on Voyager Way near the intersection of Voyager and Old Madison Pike, is expected to house 200 people working primarily on missile defense activities. The company plans to consolidate existing missile defense operations into the new building while maintaining its headquarters in Perimeter Office Park.

Four Mile Place Announced L.D. Development, LLC and the Concourse Group held a groundbreaking ceremony for Four Mile Place, a new $6.5 million office complex to be located near the intersection of Carl T. Jones Boulevard and Cecil Ashburn Drive. The new 50,000 square foot complex will consist of three adjoining two-story office buildings with construction expected to be completed in November.

Chamber Hosts Luncheon with Japanese Chamber of Commerce The Chamber of Commerce hosted a business meeting and luncheon for several key Japanese companies at the Nippon Club Tower in New York recently as guests of the Japanese Chamber of Commerce and Industry of New York. The meeting, designed to introduce the Huntsville community to Japanese companies with the potential for future business investment, highlighted key advantages and opportunities for doing business in the Huntsville/Madison County area. Toyota Motor North America, Inc.’s President and CEO, Mr. Toshiaki (Tag) Taguchi, addressed the audience, expressing his thanks and delight to the Huntsville community for welcoming Toyota with open arms – literally.

He emphasized that Huntsville has been a very good area for Toyota to do business, and that the people of Huntsville are lo yal and hardworking employees, and commended Huntsville/Madison County for its quality of life.

Leaders from the Huntsville/Madison County Chamber of Commerce emphasized Huntsville’s technology environment and capable infrastructure can provide investors the necessary assets for business development and that the area could be home to a number of Japanese-based companies.

This information was published in the Japanese Chamber of Commerce & Industry, Inc.’s monthly July report, which is distributed to their membership as well as many other contacts.

21 1 In i t i a t i ves October 2002

Economic Indicators P O P U LAT I O N

E M P L O Y M EN T *

Madison County

City of Huntsville

City of Madison

Huntsville Metro Area

35-Mile Radius

MAY 02

JUN 02

1980 Census........................................196,966

145,604

6,081

242,971

439,023

Total Non-ag Employment......................................................................184,400

184,300

1990 Census........................................238,912

159,789

14,904

293,047

505,967

Manufacturing................................................................................33,300

33,300

2000 Census........................................276,700

158,216

29,329

342,376

582,374

Durable Goods.......................................................................... 26,900

27,000

2005 Projection....................................299,778

161,657

31,471

367,735

612,701

Non-durable Goods..............................................................................6,400

6,300

% Growth 1980-2000 ............................40.5%

8.7%

382.3%

40.9%

32.6%

Non-manufacturing......................................................................150,100

151,000

Construction & Mining..........................................................................7,000

6,900

1980 Census..........................................67,082

51,113

2,040

82,440

150,864

Trans. & Utilities....................................................................................4,800

4,800

1990 Census..........................................91,208

63,058

5,944

110,893

191,640

Trade ..................................................................................................37,600

37,300

Huntsville Metro Area**

Households

2000 Census........................................106,423

62,437

11,779

131,683

223,990

Finance..................................................................................................5,100

5,100

2005 Projection....................................115,256

63,795

12,638

141,427

235,637

Services..............................................................................................55,900

56,000

% Growth 1980-2000 ............................58.6%

22.1%

477.4%

59.7%

48.5%

Government........................................................................................40,700

40,900

* Based on place of employment.

Race

**Includes Madison & Limestone counties Source: Alabama Department of Industrial Relations

2000 Pop. by Race ............................276,700

158,216

29,329

342,376

582,374

White......................................................72.1%

64.5%

80.1%

74.3%

82.5%

LABOR FORCE*

Black......................................................22.8%

30.2%

13.0%

21.0%

15.4%

Huntsville Region (Counties)

Asian & Pacific Islander............................1.9%

2.3%

3.6%

1.6%

1.2%

Other Races..............................................3.2%

3.0%

3.3%

3.1%

0.9%

Income & Age Avg. Household Income......................$54,995

$54,494

$69,774

$52,932

$49,969

Med. Household Income......................$43,081

$40,937

$59,801

$41,501

$38,729

Per Capita Income ..............................$22,430

$22,936

$29,581

$21,404

$20,099

Average Age..............................................35.9

36.9

33.0

36.1

36.7

Source: EQUIFAX, National Decision Systems, 2001; U.S. Census Bureau (www.census.gov)

MAY 02

JUN 02

Madison ......................................................................................146,810

147,910

Limestone ......................................................................................30,010

30,230

Jackson ........................................................................................25,170

25,620

Marshall..........................................................................................39,120

39,390

Morgan ..........................................................................................55,250

56,440

Franklin, TN....................................................................................18,920

19,070

Giles, TN ........................................................................................15,870

16,100

Lincoln, TN ....................................................................................14,870

14,620

Huntsville Regional Total..........................................................346,020

349,380

* Based on place of residence.

Source: Alabama Department of Industrial Relations, Tennessee Department of Employment Security.

R E TAIL SALES Huntsville Region (Counties) - (000�s)

Total Food & Furniture & Retail Sales Restaurants Merchandise Automotive

Madison ..................................................................$4,197,785

$859,915

$885,953

UNEMPLOYMENT RAT E *

$1,098,255

Limestone ..................................................................$568,268

$119,439

$119,026

$132,312

Jackson......................................................................$472,058

$121,340

$86,289

$101,864

Marshall....................................................................$1,327,821

$177,607

$210,540

$646,026

Morgan ....................................................................$1,472,708

$277,539

$227,308

$499,417

Franklin, TN ................................................................$325,240

$113,831

$54,755

$65,402

Giles, TN ....................................................................$294,638

$62,746

$29,714

$98,169

Lincoln, TN..................................................................$303,977

$60,861

$54,694

$98,982

Regional Total ........................................................$8,962,495

$1,793,278

$1,668,279

$2,740,427

MAY 02

# of Projects

Square Feet

Total Const. Contracts........................125

4.2% 5.5%

Alabama............................................................................................5.7%

5.4%

United States....................................................................................5.7%

5.9%

* Based on place of residence.

Source: Alabama Department of Industrial Relations (www.dir.state.al.us) Tennessee Department of Employment Security (www.state.tn.us/labor-wfd)

COST OF LIVING INDEX 1st QTR 2002

JUN 02 $ Value

# of Projects

Square Feet

$ Value

357,000

$26,072,,000

97

310,000

$43,915,000

Commercial ............................................8

94,000

$6.361,000

14

96,000

$11,172,000

Manufacturing ........................................3

40,000

$1,045,000

1

0

$200,000

Single Family ......................................104

222,000

$8,324,000

66

141,000

$6,236,000

Multi-Family............................................0

0

0

0

0

0

CompositeGrocery Index Items

Index

MAY 02 % Change

JUN 02 Index % Change

01-02

Utilities

Transportation

Health Care

Goods & Services

99.0

101.7

97.8

87.4

103.7

100.2

99.8

HUNTSVILLE, AL

91.7

95.1

77.9

81.6

102.1

90.6

101.1

Dallas, TX

100.6

96.4

94.9

109.2

101.7

97.5

105.6

98.9

102.2

86.9

105.8

90.5

100.0

108.3

Orlando, FL St. Louis, MO

99.9

92.9

96.0

106.2

105.5

105.9

102.5

Washington, D.C.

132.3

128.6

157.5

114.1

125.6

125.5

120.0

Source: American Chamber of Commerce Researchers Association. Website (www.accra.org)

HOME SALES MAY 02

JUN 02

Houses on Market.............................................................................. 3,577

3,677

Houses Sold & Closed.......................................................................... 491

444

Avg. Selling Price.......................................................................... $125,767

$122,736

Avg. Days on Market..............................................................................110

97

Median Sales Price........................................................................$105,000

$104,900

01-02

United States...............................................................179.8

1.2%

179.9

1.1%

South Region...............................................................173.2

0.9%

173.5

0.8%

Source: Bureau of Labor Statistics, Atlanta, GA. Website (http://stats.bls.gov)

Housing

Atlanta, GA

Source: F.W. Dodge, Printed with permission.

CONSUMER PRICE INDEX

JUN 02

Huntsville Region..............................................................................4.6%

Source: Sales & Marketing Management, 2001 Survey of Buying Power, Printed with permission.

CONSTRUCTION ACTIVITY

MAY 02

Madison County................................................................................3.5%

Source: Huntsville Area Association of Realtors

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1 In i t i a t i ves October 2002

Economy-at-a-Glance Huntsville/Madison County, Alabama is located in the middle of the southeastern United States, with over 4 million people within a 100-mile radius. The Huntsville community serves as the primary e c onomic hub of the north Alabama and southern Tennessee region. The counties adjoining Madison County combine to form an eight-county regional market with a population totaling 700,000 people.

The Huntsville/Madison County economy is known as one of the strongest economies in the South, with low unemployment, strong job growth and income levels leading the region.

Business growth and investment from U.S. and international companies have made Huntsville/ Madison County one of the country’s top “hot spots” for growing a business and raising a family.

LEADING EMPLOYERS U.S. Army/Redstone Arsenal . . . . . . . . . .11,141 Huntsville Hospital System . . . . . . . . . . . . .4,355 Sanmina SCI

. . . . . . . . . . . . . . . . . . . . . .3,300

Huntsville City Schools . . . . . . . . . . . . . . .3,000 DaimlerChrysler Corporation . . . . . . . . . . .2,800 NASA Marshall Space Flight Center . . . . . .2,754 The Boeing Company . . . . . . . . . . . . . . . .2,700

Aerospace Huntsville/Madison County is home to the NASA Marshall Space Flight Center and has representation from nearly every major U.S. aerospace corporation with over 90 companies employing more than 11,000 people in the local aerospace industry.

City of Huntsville . . . . . . . . . . . . . . . . . . . .2,186 Madison County Schools . . . . . . . . . . . . . .1,936 Intergraph Corporation . . . . . . . . . . . . . . . .1,736 ADTRAN . . . . . . . . . . . . . . . . . . . . . . . . . .1,731 Goodyear/Dunlop Tires . . . . . . . . . . . . . . .1,660 Computer Sciences Corporation . . . . . . . . .1,600 Teledyne Brown Engineering . . . . . . . . . . .1,582 Walmart/Sam”s Stores . . . . . . . . . . . . . . . .1,581 West Corporation . . . . . . . . . . . . . . . . . . . .1,300 University of Alabama in Huntsville . . . . . .1,112 Madison County . . . . . . . . . . . . . . . . . . . . .1,073 Benchmark Electronics . . . . . . . . . . . . . . . . .921

Defense Huntsville/Madison County plays a key role in the U.S. Army’s technology development programs. The Army’s Aviation & Missile Command and Space & Missile Defense Command both drive a thriving engineering economy for companies supporting the technology activity of the Army in Huntsville.

Alabama A&M University . . . . . . . . . . . . . . .890 Lockheed Martin . . . . . . . . . . . . . . . . . . . . . .844 Target Distribution Center . . . . . . . . . . . . . . .750 Crestwood Medical Center . . . . . . . . . . . . . .668 PPG Industries, Inc. . . . . . . . . . . . . . . . . . . .660 Madison City Schools . . . . . . . . . . . . . . . . . .644 Engelhard Corporation . . . . . . . . . . . . . . . . .617 Dynetics, Inc. . . . . . . . . . . . . . . . . . . . . . . . .600 SAIC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .574 Northrop Grumman . . . . . . . . . . . . . . . . . . . .571 CAS, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . .510 CINRAM . . . . . . . . . . . . . . . . . . . . . . . . . . . .500 Source: Chamber of Commerce, January 2002.

Electronics Over 300 international and domestic corporations in Huntsville/Madison County are involved in the design and production of electronics and computer-related technology, including Sanmina SCI, one of the world’s largest contract electronics manufacturers.

Research & Technology Huntsville’s Cummings Research Park is the country’s 2nd largest research and technology park, containing 220+ companies employing 22,500 people involved in technology research and development.

Manufacturing Huntsville/Madison County’s manufacturing industry represents a diverse mix of technology, assembly and production operations from both domestic and international corporations, comprising one-fourth of the local employment base.

23 1 In i t i a t i ves October 2002

Huntsville Area Technology Rankings #13 Software Employment Center in the USA Software & Information Industr y Association, March 2002.

“High-Tech Haven”

Forecast for Huntsville Looks Bright National Weather Service to Open New Office

Newsweek Magazine, April 2001 Top 10 among Important U.S. Cities for the Information Age

“Putting Service Back into Weather” will be the slogan for the new office of the

“Cyber Mecca” Expansion Management Magazine, January 2001. #3 in the USA for Percentage of New High-Tech Jobs Created

“Cybercity” NASDAQ, AeA, & Site Selection Magazine, Dec. 2000 & Mar. 2002. #1 in the Southeast U.S. for Percentage of High-Tech Employees #3 in the USA for Percentage of New High-Tech Jobs Created #6 in the USA for Percentage of High-Tech Employees

“Techno-Pole” Milken Institute, July 1999. #2 in the USA for Percentage of Engineering Services #3 in the USA for Percentage of Guided Missiles & Space Vehicles #7 in the USA for Percentage of Computer & Data Processing

Huntsville is selected as #3 in the top 20 Best Places to Live & Work in America.

-Employment Review Magazine, June 2002

Huntsville is a city with a ton of technological firepower.

-ABC News, WJLA, Washington, D.C., February 2002

Huntsville is a thriving high-tech oasis.

-CNN, January 2002

Huntsville ranks 12th of America's Hottest Cities for business expansion and relocation.

National Weather Service opening soon in Huntsville. The new Huntsville weather forecast office will be housed within the new addition to the National Space Science Technology Center in Cummings Research Park.

This will be the 122nd weather office in the National Weather Service system and will have forecast responsibility for 11 counties in extreme north Alabama.

In addition to forecasting the weather, the new office will work with NASA and UAH atmospheric science departments (also located in the facility) to explore some exciting collaborative opportunities such as testing various NASA and UAH lightning, radar, satellite, and weather model products.

The 18-member staff at the new office will include 8 forecasters. For them, the first order of business will be to have the office operational in February 2003, following extensive training on the special weather regimes that affect the Tennessee Valley.

All of the Huntsville/Madison County region will be glad to have this new office here to keep an eye on the weather. And “Putting Service Back into Weather” will be putting service right in the heart of research, and in the heart of Huntsville.

-Expansion Management Magazine January 2002

– Staff Writer

25 1 In i t i a t i ves October 2002

Giving Us the EDGE

[excellence, development, growth, enhancement]

What’s in a name?

In this case, an explanation. A description of a proven strategy.

Every community wants great companies to choose them.

A definition of excellence.

Perhaps even more importantly, it is the sense of partner-

Everyone is competing to improve the economic future of their

ship that more than 150 investor companies bring to the plan.

area. So what gives the Chamber of Commerce of Huntsville/

Companies from all types of industries invest their dollars,

Madison County the edge in recruiting?

The strategy is all contained in the name of the Chamber’s five-year development program – the EDGE. It is Excellence in marketing, Development of the workforce, Growth of

time, and cooperation to keep Huntsville/Madison County’s economic future bright.

With the direction of its investing partners, the Huntsville/ Madison County community has successfully developed a solid

local businesses, and Enhancement of image that all work

and proven strategy for improving the job opportunities for

together to give Huntsville and Madison County the competitive

local citizens which in turn improves the quality of life in the

advantage it needs to attract attention of business prospects.

entire region. The strategy, simply stated, is to build on the

Embedded in the EDGE program are six specific initiatives

strengths of the community – such as a highly-skilled workforce

dealing with various components of the marketing strategy.

– by encouraging local companies to grow and new high-

Each component compliments the others to form a comprehen-

quality employers to move here.

sive plan to address the major economic needs of a community which, in turn, meets the needs of existing company

The EDGE. The name of a strategy of excellence – just what this community expects and deserves.

expansions and new company locations.

The EDGE Investors

[2002]

Advisory Council ADTRAN Inc. AmSouth Bank BellSouth Colonial Bank COLSA Corporation Compass Bank Computer Sciences Corporation DaimlerChrysler Corporation Huntsville/Madison Co. Builders Assoc.

Regions Bank SAIC SouthTrust Bank The Boeing Company The Huntsville Times Turner Universal Construction WHNT -TV Public Partners City of Huntsville City of Madison Huntsville Utilities Huntsville-Madison Co. Airport Authority Madison County Commission Tennessee Valley Authority Private Sector AC, Incorporated ACT Personnel Service, Inc. Alabama A&M University Allied Photocopy, Inc. Analytical Services, Inc. APAC-AL, Inc. Arnold Hornbuckle Available Plastics, Inc. Avocent Corporation Avis Car Rental Balch & Bingham Baron Services Beason & Nalley

BellSouth Mobility/Cingular Ben Porter Real Estate Bentley Pontiac/Cadillac/Mitsubishi Bill Heard Chevrolet Bill Penny Motor Company Bill Poole Realty Blue Cross/Blue Shield Bradley, Arant, Rose & White Burr & Forman, LLP Calhoun Community College Century Buick Company CINRAM Clinic for Women, P.A. Colonial Properties Comcast Cablevision Courtyard by Marriott Crabtree, Snellgrove & Rowe, PC Crestwood Medical Center CST (Computer Systems Tech) D. P. Associates Davidson Enterprises, LLC Decatur Transit (Hertz) Delta Air Lines DESE Research Dynetics, Inc. Enfinger Development, Inc. Engelhard Corporation ERC, Inc. First American Bank First Commercial Bank Foreign Language Services, Inc. Fountain, Parker, Harbarger Fuqua, Osborn, & Associates, PC General Products G.W. Jones & Sons Giles & Kendall, Inc. H.C. Blake Company Harold Construction Corp.

Heritage Bank

Hernandez Engineering HiWAAY Information Systems Huntsville Board of Realtors Huntsville Ford Tractor Huntsville Hilton Huntsville Marriott Ivan Allen JH Partners J. Smith Lanier & Co Johnson & Associates Johnston, Moore, Maples & Thompson Jones & Herrin Keystone Foods Corp.

KNOLOGY Holdings, Inc. Kudzu Productions, Inc. Lamar Outdoor Advertising Lamb Commercial Services, Inc. Lanier, Ford, Shaver & Payne Lee Builders LG Electronics Madison Research Corporation Madison Square Chrysler/ Jeep/Subar u Madison Square Mall Martinson & Beason MDA Associates MEVATEC Corp.

Northrop Grumman-Huntsville Oakwood College Outback Steak House Parisian Park Supply Parker Hannifin Pearce Construction PricewaterhouseCoopers Pride Home Entertainment Qore Property Sciences QuantiTech, Inc. Ray Pearman Lincoln Mercur y Redstone Federal Credit Union

Regal Auto Plaza Richardson, Callahan PA Right Way Restaurants, Inc., dba Steak Out, Rosies Saint Gobain Industrial Smith Barney Samples Properties Sanmina SCI SONAT SOUTHBank Sparta Inc. SRS Technologies State Farm Insurance Stone Engineering Co. Storie Enterprises Summa Technology Sverdrup Technology Inc. Tec-Masters, Inc. Teledyne Brown Engineering The Fudgey Nut The Heritage Club, Inc. The Spencer Companies Inc. Thrasher Oil Company Three Springs, Inc. Triad Properties Corp.

TRW, Inc. Union Planters Bank United Mailing, Inc. University of Alabama in Huntsville VoiceStream WAHR - Radio Wal-Mart WES-FAM (Burger King) White, Fleming & Co. Inc. White Tiger Graphics WLRH Public Radio Wyle Laboratories WZYP-Mix 93.3-WVMP-WVNN Xcel Printing Service

Chamber of Commerce

Board of Directors & Executive Committee

No t e w o r t h y Stallworth Stats

Alabama A&M University Bulldogs · All-Southern Intercollegiate Athletic Conference

National Football League Pittsburgh Steelers · 4 Super Bowl Rings · Winning Touchdown Super Bowl XIV · 8,723 yards, 537 catches, 63 touchdowns · NFL Comeback Player of the Year 1984

NFL Hall of Fame Class of 2002 John Stallworth Day

· Inducted August 3, 2002

Celebration Kickoff in Big Spring Park August 13, 2002

Madison Research Corporation · President & CEO

Huntsville, Alabama · Resident · Community Leader

Ca l e n d a r

September 19

24

Business After Hours: Wholesale Florist and Center for Sight will sponsor the 5:00 - 7:00 event at Wholesale Florist, 3120 Leeman Ferry Road.

RSVP 535-2027.

Annual Outing with the Army and NASA at Ditto Landing. Call 535-2031 for more information.

Elected Board Ronald W. Boles, Chair Howard Thrailkill, Chair-Elect Pete Apple Scott Averbuch Marc Bendickson,Ph.D Sheila Brown George Beason Barbara Buice Watson Joel Daves,IV Gina DeSimone Wyn Dobbs Marshall England Dick Fountain Bill Gurley Richard Holloway Dr. Eric Janssen David Jensen William Johnston,Jr. Raymond Jones,Jr. Tracy Jones Charles Kettle Donna Lamb LTG James Link Lynne Lowery John Riche John Stallworth Karen Stanley William Stender Johnnie Vann Peter Voetsch Jean Wessel-Templeton

Executive Committee Ronald W. Boles, Chair Howard Thrailkill, Chair-Elect Tommy Beason, Vice Chair Small Business Hall Bryant, Chair Appointed Gina DeSimone, Secretary Dave Hargrove, Vice Chair Membership Chairman Mike Gillespie, Chair Appointed William Johnston,Jr., Vice Chair Resource Development Donna Lamb, Treasurer John Riche, Vice Chair Government Affairs Scott Seeley, Chair Appointed

October 29 Business After Hours: Osborne Jewelers 3011 S. Memorial Pkwy, from 5:00 - 7:00.

RSVP 535-2027.

31 City of Huntsville Update with Mayor Loretta Spencer at the Von Braun Center.

Call 535-2031 for more information.

Loretta Spencer, Chair Appointed Karen Stanley, Vice Chair Workforce Development Paula Steigerwald, Vice ChairCommunications Clay Vandiver, Past Chair Brian Hilson, President/CEO Jeff Thompson, COO

Chamber of Commerce Huntsville/Madison County P.O. Box 408 Huntsville, Alabama 35804 (256) 535-2000 www.hsvchamber.org

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1 In i t i a t i ves October 2002