Initiatives magazine, December 2002

ini tiatives

december / january2002

huntsville madison county

chamber of commerc e

What Makes Our Economy Tick

05

ini tiatives H u n t s vi ll e / Ma d i s o n C o u n ty • Ch a m b e r of Co m m e r c e

f eat u re s cover

What Makes Our Economy Tick

05

Growing Quality Employees

09

Educational Institutions Build Reputation for Producing A Prepared Workforce

The Livability Factor

17

Where Huntsville Really Meets the Challenge

Huntsville Boasts A Great Ride

23

I-565 Accelerates Economic Growth

25

de v el o p m e n t s What Makes Our Economy Tick Cover design by Huntsville/Madison County Chamber of Commerce Publications Department.

s t a ff

Publication Manager

Rikki Thomas

Managing Editor

Barbara Nash, APR

Contributing Editor

Hiroko Sedensky

Contributing Writers

Shannon Belew Kari Hawkins Marianne Higgins Mike Kelley Wes Thomas

Account Executive

R.D. Patterson

Publisher

Jeff Thompson

Economic Development Highlights

11

Member Developments

13

Economic Indicators

20

Economy-at-a-Glance

21

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 225 Church Street Huntsville, AL 35801 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.”

202 In i t i a t i ves December 2002

What Makes Our Economy Tick Newcomers to Huntsville are not here long before they notice a difference in this area. There is a vitality to the Huntsville economy not always seen in many other parts of the nation. But those who have moved here from Austin, Texas; Denver, Colorado or Silicon Valley in California, probably feel right at home.

This is an economy driven by technology, innovation, and new ideas.

Research and new technology for national defense or space exploration fuel this economy. Some of those developments get recycled – redirected into new firms. In recent decades, new companies have been spawned here with surprising regularity. Some, like Sanmina-SCI in circuit board production or ADTRAN in telecommunications equipment, become giants, employing thousands and doing business around the world.

The Twin Pillars

What makes the Huntsville economy tick? Listen, and you may hear it in the sound of computer keyboards at a hundred software development companies. Or it could be as loud as the roar of a new rocket engine under development.

Research and technology support the space and defense industries that put Huntsville on the map 50 years ago.

Huntsville pulsates to the beat of research and technology, making it one of the most energetic technology development centers in the U.S., according

to national business, economic and technology publications. Newsweek named Huntsville one of the “Top 10 High Tech Havens” in April 2001, and CNN touted Huntsville as a thriving high-tech oasis in January of 2002.

It all began in the summer of 1941 when the Army selected a 33,000 acre tract southeast of town as the site for a complex of munitions plants. Today, Redstone Arsenal is home to 25,000 civilian and military employees. The Army’s Aviation and Missile Command (AMCOM), together with the Army’s Program Executive Offices for Aviation, Tactical Missiles, and Air and Missile Defense, provide thousands of jobs crucial to national defense.

In addition, several hundred contractor firms thrive in Huntsville’s defense climate, providing everything from lawn maintenance to computer-aided weapons system simulations. To the Army’s estimated $900 million in payrolls must be added more than $1 billion in federal procurement spending.

Most of them cluster in Cummings Research Park – home to 220 companies employing some 22,000 employees.

Growth at CRP has been evident from

several firms, such as MEVATEC, Davidson Enterprises, and Advanced Federal Services Corporation, that have recently moved into new facilities.

Marshall Space Flight Center, one of NASA’s two largest centers, is the birthplace of the Saturn launch vehicle that put a man on the moon. Today it shares control of the 21-year-old Space Shuttle program with Johnson Space Center in Houston, and is a principle NASA center for the International Space Station program. Its 2,700 federal employees, many of them highly paid engineers and scientists, will generate a payroll this year of nearly $200 million.

Manufacturing: Strength in Diversity

As a sleepy mill village at the turn of the century, Huntsville’s largest industries were the textile mills that clustered close to downtown. These relics of a bygone economy are gone, replaced by a new manufacturing base that reflects Huntsville’s high-tech character. From computer boards to synthetic human genes, from diesel engines to rocket engines, manufacturing in the Rocket City continues to flourish and expand.

Over the past five years, Huntsville and 03 3 In i t i a t i ves December 2002

What Makes Our Economy Tick continued from page 05

Madison County have averaged more than $183 million per year in new industrial investSo how do you describe the ment. Today, manufacturing Huntsville economy today? accounts for every fourth Huntsville job – jobs which Diversified...? Healthy, range across the technology multi-faceted, and growing spectrum.

“What’s great about would also fit. manufacturing in Huntsville and Madison County is that it provides jobs ranging from ees produce thousands of diesel engines semi-skilled to highly-skilled,” says each year. It is projected there will be up to Chamber of Commerce President Brian 1,000 employees ultimately. In October, Hilson, adding that many local Michigan-based Williams International manufacturers are high value-added purchased 50 acres on the south side of operations whose products are exported the airport for a small aircraft jet engine worldwide. Indeed, the Chamber components plant and a jet engine focuses its efforts on recruiting more of maintenance facility. The firm plans to these firms. “Economic development begin hiring in 2004 the first of what will remain a high priority for us,” could be as many as 700 employees.

Hilson says.

Major manufacturing announceA Growing Retail Hub ments have come with a frequency that In terms of employment numbers would make most cities envious. and compensation levels, retailing in Cinram International, Inc., a manufacHuntsville takes a back seat to the other turer of pre-recorded multimedia sectors. But it has been coming on products for the entertainment industr y, strong in recent years, a fact of no small more than tripled its plant size in 2001 significance to the City of Huntsville, to more than 1 million square feet. The which derives most of its operating automotive world took notice in budget from sales tax collections.

February 2001 when Toyota selected a Huntsville retailers draw from an eightHuntsville site for a $220 million engine county area that includes Lincoln, Giles manufacturing plant. The first phase and Franklin Counties in southern will create an estimated 350 jobs when Middle Tennessee. A major growth the facility opens in 2003. factor, says Cummings Research Park Much of that activity occurs at the Director Alex Hardy, is Huntsville’s Jetplex Industrial Park. Navistar above-average household buying power International Corporation recently of $40,152 per household. finished conversion of the existing Onan “One of the most interesting things Corporation facility where 169 employabout Huntsville,” says Hardy, “is that

we are the 151st MSA (Metropolitan Statistical Area), but when you look at buying power we rank 86th in the nation.” By comparison, he added, Atlanta is the 8th largest MSA, but ranks 34th in effective household buying power.

The magnet effect of that buying power has drawn a flurry of national retailers to the area in the past three years, with names like Target, Costco, CompUSA, Bed Bath & Beyond, and PETsMART all opening stores in new retail centers around town in 2002.

So how do you describe the Huntsville economy today? Diversified is a good one-word description.

Healthy, multi-faceted, and growing would also fit. A center for space exploration and defense, a research and development center, a manufacturing center, a retail center for nearly 1 million people, Huntsville has made a name for itself. And the 21st century looks even brighter.

And the Huntsville economy just keeps on ticking.

– Mike Kelley 404 In i t i a t i ves December 2002

Growing Quality Employees Educational institutions build reputation for producing a prepared workforce

Growing Huntsville and Madison County's community of high-tech research and industrial companies requires many elements to succeed, including a research park, numerous transportation options, and a high level of public services. But the cornerstone of such a successful community is an element that touches the lives of all citizens while also affecting the economic well being of the area – quality education.

“If you’re going to attract businesses, the number one priority of any company – whether they are bringing people here or recruiting from the local workforce – is a top quality educational system,” said Woody Sanderson, president of the local Schools Foundation.

“Most employers want a homegrown workforce where they can employ gradu ates from high school or where they can recruit college-educated employees from local colleges. It is cheaper and easier to have a homegrown, educated workforce than it is to recruit employees from other parts of the countr y.”

The impact of local educational institutions is apparent throughout the local workforce explained Alabama A&M spokesperson, Jerome Saintjones.

“College graduates are employed by a lot of our businesses in this area,” he said.

“Higher education institutions have a very significant impact on the North Alabama area and its economic growth.”

For Huntsville and Madison County, the quality and quantity of educational opportunities has been at the forefront of the area’s economic growth since the 1960s, when the gr owing number of employees at the new NASA Marshall Space Flight Center created a greater demand for engineering and scientific courses offered locally.

“Whenever a need has been identified by the community and Redstone Arsenal, University of Alabama in Huntsville has stepped up to the plate and delivered. For example, Redstone needed engineers. We started the College of Engineering,” said Ray Garner, spokesperson for UAH. “When NASA needed microgravity research, we created a microgravity research center. When both agencies needed propulsion research, we created the Propulsion Research Center. The same is true for our Center for Optics, Materials Research Center and most recently we began the Global Hydrology and Climate Center and very recently, we were instrumental in putting together the National Space Science and Technology Center.”

Such responsiveness to workforce needs is what characterizes numerous educational institutions in Huntsville/Madison County. From elementary to post-second ary education, local institutions hav e adapted and expanded curriculums to support employment demands. At the elementary and secondary levels, Huntsville and Madison County public schools have been able to maintain and surpass educational expectations, despite the lack of adequate state funding.

“We’re fortunate to have three school systems that all do a good job and that find ways to enhance their programs,” Sanderson said. “Employers want school systems that will provide a good education for the children of their employees and that will also produce graduates that can work. Our school systems are a major reason why we are the economic success story of the state.”

In fact, there is a high school within the Huntsville City School system that is dedicated solely to technology education – the New Century Technology High School located in the heart of the internationally-recognized Cummings Research Park.

“Our school does two things: it better prepares students for college-level, hightechnology courses and it gives them the entry level skills they need for a job with a high-technology company upon graduation,” said Evalyn Humphrey, principal at the leading-edge high school. “When students graduate, they have received an education that allows them to contribute 505 In i t i a t i ves December 2002

Growing Quality Employees. . . continued from page 09

to the technological growth and economic strength of their community.”

Developing an educated workforce is necessary at all levels of the area’s overall educational system. But, it is at the college level that Huntsville/Madison County has earned its reputation as a center for educational excellence.

“I think Huntsville is in excellent standing when you look at the number of post secondary and higher education institutions that are all contributing immensely to what is happening in Huntsville,” said Dr. Helen McAlpine, president of Drake State Technical College, which is a training center for the area’s new Toyota plant.

“By interfacing with businesses and developing curriculums that fit their employment needs, we are having a tremendously positive impact on the development of the local workforce.”

Course curriculum at local universities and colleges are often customdesigned to fill the needs of employers.

“We have a program where people from corporations come into the classroom to talk with students about what they are looking for in emplo yees,” said A&M’s Saintjones. “They let students know what to expect. These professionals also work with our faculty to make sure courses are teaching the things students need to know. And, our faculty often work as professionals within companies during summer months, so they are knowledgeable about new challenges that graduates will face.”

But the economic impact of local universities and colleges doesn’t end with the graduates they add to the workforce every year. Operating budgets spent in the local community, school activities and sporting events that attract visitors to the area, and students who first learn about Huntsville through national and

international recruiting efforts all impact the local economy.

“We have a diverse student body with students and visitors coming to Huntsville from all over the world,” SaintJones said. “Our activities fill local hotels, keep local restaurants busy, and introduce people to our city.”

While the high number of educated engineers, scientists, and technical employees has driven the area’s commitment to education in many ways, it has also helped to build its reputation for having a highly-educated workforce.

“Huntsville/Madison County is a well-educated area of the countr y,” said Pete Ritch, Chair of the Chamber’s Workforce Recruitment Committee, and human resources director at Huntsville’s ADTRAN, Inc. “There’s lots of intelligence to draw from locally. Many businesses partner with educational institutions to develop educational curriculums that will build a resource of employee talents in areas needed by those businesses.”

Everyone agrees that those future employees are the key to Huntsville and Madison County’s future economic growth.

“By having workers who are educated and trained, it provides companies and government agencies with workers who can make an immediate contribution to their operation,” Garner said. “Those executives and managers know they won’t have to spend a lot of time or money training new hires. This is an immediate plus as Huntsville and other cities in North Alabama try to lure companies to the region. They know our workforce has high-quality workers.”

Education is a key to economic success, and Huntsville is well-prepared to meet the challenges of providing for the workforce needs of area businesses.

Economic Development Highlights

AEgis Technologies Celebrates Grand Opening of New Facility in CRP

The AEgis Technologies Group, Inc., a leading supplier of software products, services and training to the modeling and simulation indus try, recently celebrated the opening of a new corporate headquarters facility in Cummings Research Park. The new 26,500 square foot facility, located at 631 Discovery Drive, will provide expanded office and laboratory space for the current AEgis/Huntsville employees as well as room for projected growth of 20 new employees in the coming year.

Dura Coat Products Opens New Facility Dura Coat Products, Inc., held the official grand opening ceremony October 29, 2002, on a new 48,000 square foot facility at I-565 and Peoples Road in Huntsville. The building represents more than $5.5 million in capital investment, and will generate 150 new jobs over the next few years. International headquarters and research and development laboratories for Dura Coat are located in Ri verside, California.

Davidson Technologies Dedicates New Facility in Cummings Research Park

Davidson Properties, LLC and Davidson Technologies dedicated a new two-story facility September 27 in Cummings Resear ch Park. The new 27,000 square foot building is located at 530 Discovery Drive, and is part of continuing expansion and development of facilities located in the park which is the 2nd largest research park in the United States. Davidson Technologies, Inc., is a defense contractor and began doing business from the new facility on October 1st. The company has approximately 70 employees and will occupy the entire building.

– Kari Hawkins

6 In i t i a t i ves December 2002

BUILT TO BUILD YOUR BUSINESS

Banfield, the Pet Hospital , celebrated their opening at 6275 University Drive, Suite 35, with a ribbon cutting on August 8, 2002. This is a full service veterinary hospital with state of the art pet health care by Veterinarian Dr. Aida Castro-Jones.

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.

Uptown Gallery celebrated the move to a new location at 11220 South Memorial Parkway with a ribbon cutting on August 16, 2002. They offer custom framing, digital imaging, personalized gifts, crystal and special gifts.

7 In i t i a t i ves December 2002

Member Developments

Staples, Inc., operator of more than 1,400 office supply stores worldwide, and four stores in the Huntsville area, recently celebrated the grand opening of the new store located at 1201 North Memorial Parkway in Huntsville, on October 19.

For more information or store locations, visit www.staples.com.

Cherry Creek Mortgage Company, located at 2315 Market Place, is open for all your mortgage needs in the Alabama and Tennessee area. Contact Mary Yarbrough at 256-551-0797 or email myarbro@knology.net.

SOUTHBank’s owners Danny and Lyn Wiginton, along with Mayor Loretta Spencer, officially opened their first retail branch location at 2021 Cecil Ashburn Drive on September 9.

SOUTHBank opened its second Huntsville retail location on October 16, 2002, in the new Parkway Place Mall.

LifeSouth, North Alabama’s new primary blood provider, held the grand

Osborne & Mason Jewelers celebrated a Ribbon Cutting Ceremony with

opening of its Huntsville Donation Center on October 28, 2002, all blood collected at the center will remain in Huntsville and is distributed directly to Huntsville Hospital and Crestwood Medical Center.

Councilwoman Sandra Moon, associates and guests on September 17. They are located at 3011 South Memorial Parkway and invite you to visit or call them at 256-883-2150.

8 In i t i a t i ves December 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.

Embedded in the EDGE program are six specific initiatives

entire region. The strategy, simply stated, is to build on the 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. ADECCO 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 Penney Motor Company Bill Poole Realty Blue Cross/Blue Shield Bradley, Arant, Rose & White Calhoun Community College Century Automotive 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 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/Subaru 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 Mercury 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 Suitt Construction Summa Technology Sverdrup Technology Inc. Tec-Masters, Inc. Teledyne Brown Engineering The Fudgey Nut The Heart Center The Heritage Club, Inc. The Spencer Companies Inc. Thrasher Oil Company Three Springs, Inc. TRW, Inc. Union Planters Bank United Mailing, Inc. University of Alabama in Huntsville VoiceStream WAHR - Radio 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

The Livability

Factor Where Huntsville Really Meets the Challenge

Above: The newly-renovated Terry Hutchens Building offering elegance and convenience.

Right: The green frogs seem to be proud of the rebirth of the building.

A city’s livability entails more than just its attractiveness or the ability for residents to comfortably call it home.

For Huntsville, livability also serves as the economic backbone of the community.

From a quality public education system to excellent housing options and a wide variety of educational and cultural offerings, Brian Hilson, President & CEO of the Huntsville/Madison County Chamber of Commerce, describes these factors as something that has attracted a broad range of individuals and companies to the community. He even credits these new citizens with bringing in their own expectations of what makes a community livable.

“We also enjoy a relatively high-income level and that carries certain expectations for an acceptable standard of living to the community,” said Hilson.

These increased standards, as well as the personal experiences and ideas from the city’s residents, clearly contribute to Huntsville’s ability to attain the much sought after livability factors that embody a successful community. A recent downtown Huntsville development project serves as case in point.

“The economic vitality of a community is somewhat measured by how well a downtown does in that community – you

cannot have a stagnant downtown and expect a community to thrive,” said Ralph Gipson of CityScapes, LLC. That premise led an area couple to plan the development of a multi-million dollar entertainment and living venue called Electric Avenue. Centered in the heart of downtown Huntsville, the development plan includes everything from upscale and casual dining on Washington Square to high-rise condominiums and trendy loft apartments born from some of the city’s most notable historical landmarks.

“One of Jim and Susie Hudson’s goals in creating CityScapes was to develop an area with strong entertainment venues to bring young professionals into the area,” said Gipson. Developing Electric Avenue helped address this recruitment need, while also ensuring viable economic growth for the city’s future.

As founder of Research Genetics, Jim Hudson quickly realized that the average age of his employees was extremely young.

Gipson said this was especially surprising when you considered these people held not only masters, but also doctorate degrees. Not surprisingly, Hudson ran into the challenge of recruiting and retaining such dynamic employees, and decided to do something about it.

“The major focus of CityScapes is the development of downtown Huntsville into a place where you can work, live and play

– and this helps support the economic viability of both the downtown area and our community as a whole,” said Gipson.

And that’s the idea behind creating a livable community. “By creating an area of critical mass of this sort – it just feeds off itself,” said Gipson.

The same amenities that attract future residents to the community are also what bring tourists to our area, according to Judy S. Ryals, executive director of the Huntsville/Madison Convention & Visitor’s Bureau.

“We experience all four seasons, and it’s both a clean and a safe community for living – plus we have a beautiful natural landscape that serves as a wonderful backdrop for the city,” says Ryals. She agrees education and health services are important pieces to making a community livable, but also recognizes the need for outside tourism dollars to help fund those critical areas.

Attractions ranging from the Scarecrow Trail at the Botanical Garden to Santa’s Workshop at the EarlyWorks Children’s Museum and to larger events such as Big Spring Jam and Panoply are all examples of activities that ser ve residents within our community, as well as attract visitors.

As a revenue-generating organization, Ryals’s Convention & Visitor’s Bureau focuses on promoting Huntsville’s livability factors to the rest of the world in an 10 In i t i a t i ves December 2002

The Livability Factor. . . continued from page 17

effort to bring in new revenue from tourists. She said those funds ultimately help build the coffers of our schools, roads, police and fire departments and continue to make our community livable and attractive for ever yone.

One of Ryals’s newest offerings to bring tourism dollars into Huntsville focuses on highlighting the area’s natural resources. She’s working with the Land Trust of North Alabama to coordinate a birding trail across North Alabama, which includes a spot on the coveted Monte Sano Mountain.

“These natural resources give the city a green backdrop that has a very unconscious appeal, yet people coming into the community see the natural beauty that surrounds the city – it’s a subtle attribute that impacts our economic growth,” said Jill Gardner, executive director for the Land Trust.

Since the mid-80s the group has preser ved more than 3,000 acres – 80 percent of that is in the city limits – making it what Gardner describes as a truly urban land trust. And while she touts the preservation of green space, she’s also quick to point out the need for both commercial and residential development.

“We’ve got a healthy economy, low unemployment, and an educated population – and we want to see the community continue to grow and be prosperous through development,” said Gardner.

While recently taking a visitor on a brief tour of the city, Hilson saw how readily these efforts merged to form a snapshot of the community.

Driving from Cummings Research Park and the International Airport to the Space and Rocket Center and then to the downtown Huntsville area, Hilson said that in a very short amount of time you can form a positive impression of what it’s like to live in this community. Such a tour highlights places of employment, our technologies, our history, and our plans for the future – all with a scenic backdrop of the area’s natural beauty.

By putting all those elements together, the Huntsville community has a livability factor that is hard to beat.

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11 In i t i a t i ves December 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

AUG 02

SEP 02

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

145,604

6,081

242,971

439,023

Total Non-ag Employment............................................................183,400

184,300

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

159,789

14,904

293,047

505,967

Manufacturing................................................................................32,900

33,300

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

158,216

29,329

342,376

582,374

Durable Goods ..........................................................................26,700

27,000

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

161,657

31,471

367,735

612,701

Non-durable Goods..............................................................................6,200

6,900

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

8.7%

382.3%

40.9%

32.6%

Non-manufacturing......................................................................150,500

151,000

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

6,900

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

51,113

2,040

82,440

150,864

Trans. & Utilities....................................................................................4,900

4,800 37,400

Households

Huntsville Metro Area**

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

63,058

5,944

110,893

191,640

Trade ..................................................................................................37,400

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

62,437

11,779

131,683

223,990

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

5,000

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

63,795

12,638

141,427

235,637

Services..............................................................................................56,900

56,000

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

22.1%

477.4%

59.7%

48.5%

Government........................................................................................40,100

40,900

* Based on place of employment.

Race 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%

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

30.2%

13.0%

21.0%

15.4%

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, 2002; U.S. Census Bureau (www.census.gov)

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

LABOR FORCE* AUG 02

SEP 02

Madison ......................................................................................147,750

147,860

Limestone ......................................................................................30,030

30,130

Huntsville Region (Counties)

Jackson ........................................................................................25,180

25,180

Marshall..........................................................................................39,210

39,490

Morgan ..........................................................................................55,440

55,440

Franklin, TN....................................................................................18,930

18,810

Giles, TN ........................................................................................14,990

14,740

Lincoln, TN ....................................................................................14,990

14,740

Huntsville Regional Total..........................................................347,520

347,300

* 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 ..................................................................$3,508,343 Limestone ..................................................................$548,097

$728,182

$699,092

$127,774

$114,387

$911,012 $122,342

Jackson......................................................................$449,635

$119,554

$85,382

$92,105

Marshall....................................................................$1,209,684

$167,039

$195,087

$580,420

Morgan ....................................................................$1,399,138

$271,592

$219,535

$436,676

Franklin, TN ................................................................$303,442

$109,122

$52,945

$58,456

Giles, TN ....................................................................$282,223

$61,550

$28,288

$95,491

Lincoln, TN..................................................................$289,532

$54,733

$53,655

$96,290

Regional Total ........................................................$7,990,094

$1,639,546

$1,448,371

$2,392,792

UNEMPLOYMENT RAT E *

AUG 02

SEP 02

Madison County................................................................................4.2%

4.1%

Huntsville Region..............................................................................5.2%

5.1%

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

5.7%

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

5.6%

* 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 2nd QTR 2002

Source: Sales & Marketing Management, 2002 Survey of Buying Power, Printed with permission.

CONSTRUCTION ACTIVITY

AUG 02

SEP 02

# of Projects

Square Feet

$ Value

# of Projects

Square Feet

$ Value

Total Const. Contracts........................163

603,000

$43,631,000

120

343

$26,155,000

Commercial ..........................................22

189,000

$16,993,000

18

41,000

$5,323,000

Manufacturing ........................................2

115,000

$13,156,000

1

0

$130,000

Single Family ......................................126

269,000

$9,976,000

87

186,000

$7,138,000

Multi-Family ............................................1

7,000

216,000

1

6,000

$252,000

CompositeGrocery Index Items

Index All Urban Consumers

AUG 02 % Change 01-02

SEP 02 Index % Change 01-02

Utilities

Transportation

Health Care

Goods & Services

Atlanta, GA

99.6

104.9

98.0

94.2

102.9

105.8

97.6

HUNTSVILLE, AL

93.4

97.3

82.1

83.0

105.3

92.9

100.2

Dallas, TX

97.8

95.4

92.5

96.9

98.8

103.1

102.7

Orlando, FL

99.4

102.9

87.1

107.7

99.8

98.8

106.0

St. Louis, MO

102.6

105.7

96.5

107.8

101.5

102.1

105.5

Washington, D.C.

133.2

113.8

172.9

111.5

127.1

125.3

117.2

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

HOME SALES AUG 02

SEP 02

Houses on Market.............................................................................. 3,733

3,697

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

CONSUMER PRICE INDEX

Housing

Houses Sold & Closed.......................................................................... 591

473

Avg. Selling Price.......................................................................... $133,211

$132,703

United States...............................................................180.7

1.8%

181.0

1.5%

Avg. Days on Market..............................................................................112

123

South Region...............................................................173.8

1.3%

174.2

1.2%

Median Sales Price........................................................................$115,000

$114,700

Source: Bureau of Labor Statistics, Atlanta, GA., December 1982=100 base. Website (http://stats.bls.gov)

Source: Huntsville Area Association of Realtors

12 In i t i a t i ves December 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 Huntsville City Schools . . . . . . . . . . . . . . .3,000 CINRAM . . . . . . . . . . . . . . . . . . . . . . . . . .2,800 DaimlerChrysler Corporation . . . . . . . . . . .2,800 NASAMarshall Space Flight Center . . . . . .2,754 Sanmina-SCI

. . . . . . . . . . . . . . . . . . . . . .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.

The Boeing Company . . . . . . . . . . . . . . . .2,700 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

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.

Benchmark Electronics . . . . . . . . . . . . . . . . .921 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 Source: Chamber of Commerce

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 22,000 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.

13 In i t i a t i ves December 2002

Huntsville Boasts a Great Ride The November 2002 issue of Bicycling Magazine ranked the “Sunday Morning Fast Breakfast Ride” held by the Spring City Cycling Club (SCCC) as one of “The Nine Best Club Rides” in the nation.

The cover story of this issue featured a Special Guide to the Best Rides in 100 Cities. Huntsville was chosen as one of the nine best in that section. The “Sunday Morning Fast Breakfast Ride” is a 45-mile jaunt culminating with breakfast at Mullins Restaurant near FivePoints in Huntsville.

SCCC President Morgan Andriulli said he was not sure how his club’s ride was included in the magazine’s list. “I was kind of surprised to see our ride in Bicycling’s best rides list. I don’t know how it got there. We must have a leak in our organization or Bicycling has a mole placed in the club.”

The publicity has been a boost for the club. “The impact has been positive because we’ve had three or four phone calls within the last two weeks as a result of the blurb; a couple of local people and one visitor from California,” Andriulli said. “We’ve even had a call from a guy in the Virgin Islands who will be moving to Huntsville soon and wanted to know about the local riding scene.”

Andriulli joined the SCCC in 1990 and has since traveled around the country riding in some of the betterknown cycling hot spots. “It’s a whole lot cheaper to live in Madison County than, say, Boulder, San Diego, Seattle,

Portland, or the Technology Triangle of North Carolina. Those areas are famous as big areas for cycling, but are saddled with high costs of living, high population density, and high hassle associated with big cities,” he said. “Huntsville is an easy-going, low-cost, low-stress place to live and a good choice if you are into doing outdoor fitness activities.”

The “Sunday Morning Fast Ride” usually has from 1 (Andriulli) to 12 participants, depending upon the weather. As the name implies, it is a fastpaced ride for the more experienced cyclists. However, Andriulli, in an effort to be a good ambassador for the club will ride along with any ne wcomer so they don’t get left behind or lost.

In addition to the Sunday morning ride, the SCCC has a number of other rides during the week for cyclists of all ages and experience levels. The club has between 120-150 members, ranging in ages from preteens to those in their seventies. Many of the rides have different groups arranged according to the skill levels of the riders, so everyone can enjoy the ride without feeling intimidated. For more information on the SCCC, visit their website at www.springcity.org.

With more than 140 miles of hiking, biking, jogging, walking trails and greenways in the Huntsville area, members of the Spring City Cycling Club as well as other residents of the region enjoy some of the best recreational opportunities available anywhere.

The first official route sign of Huntsville's Bikeway Plan was unveiled this spring. The route begins at the intersection of Bradford Dr. and Explorer Blvd. in Cummings Research Park and is one of about 30 bike routes totaling 147 miles that will be identified by special signage.

Two different types of routes have been designed: basic and advanced. The basic routes will traverse through areas with a low traffic volume and have been designed for beginning or novice bicyclists. The advanced routes may have higher traffic volume and incline in grade, and have been designed for experienced bicyclists. The proposed routes also provide access to existing and planned greenways in the city.

The bike plan was coordinated with the city's public transit routes in mind. The plan recommends that bike racks be installed on all city shuttle buses to encourage multi-modal transportation uses, which will allow multimodal transit users to cover more distance and/or overcome geographical barriers that are difficult for bicyclists to negotiate.

The long-term goal of the plan is to make Huntsville safer and easier to navigate via bicycle. It is hoped that this will encourage citizens to ride bicycles to work. This would not only ease traffic problems but would cut down on road wear and pollution caused by automobiles.

The City's Planning Department will spend approximately $15,000 preparing, numbering and signing the routes. They also want to provide dedicated bike lanes to increase safety, and have applied for a $750,000 Alabama Department of Transportation Grant to make those enhancements. The grant has not yet been awarded.

– Wes Thomas

14 In i t i a t i ves December 2002

I-565 Accelerates Economic Growth Imagine life without the I-565 spur slicing through downtown Huntsville.

For the daily commuter, it is a treat to avoid traffic lights. For economic developers, it is an obvious blessing for luring new industry to the area.

Since opening in 1991, the interstate spur has helped to market all 13 research and industrial parks located in Huntsville, Madison and Madison County.

I-565 stretches from the east side of Huntsville at Highway 72 all the way to I-65, conveniently linking industry to air and rail services at the International Intermodal Center, as well as to neighboring highway systems.

Such transportation systems are key to selling Madison County to potential new industry. Just ask M.K. Mike Hong, chairman and CEO of Dura Coat Products, Inc., which just opened a 48,000 square foot manufacturing plant in Progress Industrial Park. “We will be able to service our eastern customers better from Huntsville,” says Hong. “It’s only 500 miles from several main customers, so we can guarantee one day deliveries.” Easy access to transportation systems also was a selling point which helped to lure the new 1.3 million square foot Target Distribution Center.

Steve Finnell, Industrial Development Director for the

Huntsville/Madison County Chamber of Commerce, says the area’s transportation systems are key to selling Madison County as a home to new industries. He also notes that the commitment to add sewer lines along I-565 makes a significant difference in helping to recruit new industry. For economic developers, such infrastructure can give a city an edge in competing to become a company’s new home.

Easy Access to Public Transportation

References to I-565 can be found in the “directions” section of the websites of most local companies, hotels, and tourist attractions. Since the Interstate spur is an easy starting point for local travel, Huntsville plans to build a new public transit center just off I-565, at the corner of Church Street and Cleveland Avenue. The facility will be home to the offices of Huntsville’s Public Transit and Parking Services and serve as the central transfer point for the city’s shuttle bus service. Plans for this larger complex add comfort for the city’s regular bus riders, which will feature an indoor waiting area, restrooms, and vending machines.

Perhaps most exciting is that the facility will be home to the Huntsville Convention and Visitor’s Bureau.

Looking north over the main interchange at I-565 and Memorial Parkway.

Tourists will be able to gather information about places to visit, but they don’t necessarily have to worry about directions. A large parking area will allow tourists to leave their cars behind and utilize the Tourist Trolley system to visit most area attractions, hotels and shopping centers. Included on the Tourist Trolley loop are the U.S. Space & Rocket Center, Madison Square Mall, the Huntsville Botanical Gardens, Earlyworks Children’s Museum and much more.

The new public transit center is schedule to open in 2004.

–Marianne Higgins 15 In i t i a t i ves December 2002

Thank You to the Members of The Chamber of Commerce

No t e w o r t h y

Board of Directors and Executive Committee 2002 CRP’s 40th Anniversary Celebration October 19th was a time for reflection and fun at the Festival in the Park.

UAH hosted the event which included a chili cook-off, America’s Walk for Diabetes, fitness & wellness displays, as well as treats for children of all ages.

Cummings Research Park is the fourth largest science park in the world. For more information, visit: www.cummingsresearchpark.com

Ca l e n d a r

December 11

Apollo 17 Lunar Mission - 30th Anniverar y Lunar astronauts Gene Cernan and Harrison Schmitt keynote the luncheon at 12:00 noon at the VBC, North Hall.

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 Honorable Mike Gillespie, Chair-Appointed William Johnston,Jr., Vice Chair Resource Development Donna Lamb, Treasurer John Riche, Vice Chair Government Affairs Scott Seeley, Chair-Appointed Honorable Loretta Spencer, Chair-Appointed Karen Stanley, Vice Chair Workforce Development

January 23

Annual Membership Meeting Strategic Economic Focus - Hosted by ADTRAN, Inc. and Beason & Nalley. Call 535-2027 for reservations.

Paula Steigerwald, Vice ChairCommunications Clay Vandiver, Past Chair Brian Hilson, President/CEO Jeff Thompson, COO

February 13

Business After Hours: Crown Furniture RSVP: donnam@hsvchamber.org or 535-2027.

Chamber of Commerce Huntsville/Madison County P.O. Box 408 Huntsville, Alabama 35804 (256) 535-2000 www.hsvchamber.org 16 In i t i a t i ves December 2002