Initiatives magazine, February 2004

february 2004 review

huntsville madison county chamber of commerce

Shedding new

Light

2003: A Year in Review

07

Huntsville Regional Economic Growth Initiative shines on brighter future

Great Expectations

Page 11

21

2004 Board of Directors

24-25

initiatives Huntsville/Madison County • Chamber of Comme rce

february 2004

features cover story

Shedding New Light: Huntsville Regional Economic Growth Initiative shines on brighter future

Page 11 Cover design by Sherrard Photo by Dennis Keim

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 economic hub of the north Alabama and southern Tennessee region. The Huntsville/Madison County economy is known as one of the strongest 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 it one of the country’s top “hot spots” for growing a business and raising a family.

Kristi

2003: A Year in Review

07

Strategic Planning Committee

17

Great Expectations

21

developments Member Developments

12-13

Economic Indicators

18

Economy At-A-Glance

19

ed i t o r i a l s t a f f

mission

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

contact

Chamber of Commerce Huntsville • Madison County 225 Church Street Huntsville, AL 35801 256.535.2000

Publisher

Brian Hilson

Managing Editor

Ken Smith

Editor/Consultant

Dauna Coulter

Graphic Designer

Kristi Sherrard

Writers

Dauna Coulter Mitzi Crawford Mike Kelley

Account Executive

R.D. Patterson

on the web www.HuntsvilleAlabamaUSA.com

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 Initiatives February 2004

Q UA L I T Y AR CH I TEC T U R E commercial

resi dential

Chamber of Commerce Huntsville • Madison County

Staff 2004 Brian Hilson, President & CEO Holly McClain, Communications Director Laura Kendrick, Executive Assistant to the President

Economic Development

Bird & Kamback Architects, llc 304A Franklin Street Huntsville, Alabama 35801 PHONE 256.536.1160 FAX 256.536.1460 www.bkarchitects.com

Ethan Hadley, Vice President, Economic Development Steve Finnell, Director, Industrial Development & Existing Industry Rick Davis, Director, Cummings Research Park Lillie Ben, Executive Marketing Assistant Amy Locke, Industrial Development Assistant

Investor Relations Loren Traylor, Vice President, Investor Relations Pat Jackson, Membership Director Cheryl Schultz, Director, Small Business & Workforce Development Debra Dunbar, Launch Program Director Donna McCrary, Investor Relations Assistant Terrie Ledbetter, Membership Representative

The Chamber of Commerce

Board of Directors and Executive Committee 2004

Tommy Beason, Chair LTG James Link (Ret.), Chair-Elect Howard Thrailkill, Past Chair Joel Daves, Secretary Gail Wall, Treasurer Brad Jones, Vice Chair Economic Development Joe Ritch, Vice Chair Governmental Affairs Dave Hargrove, Vice Chair Investor Relations Karen Stanley, Vice Chair Small Business Scott Seeley, Vice Chair Research & Information Services Joe Austin, Vice Chair Workforce Development Chairman Mike Gillespie, Chair-Appointed Bill Gurley, Chair-Appointed

Governmental Affairs

Mayor Loretta Spencer, Chair-Appointed

Mike Ward, Vice President, Governmental Affairs Jay Snyder, BRAC Executive Director Tina Leopold, Program Assistant

Irma Tuder, Chair-Appointed

Research & Information Services

Brian Hilson, President/CEO

Elected Board Tommy Beason, Beason & Nalley, Inc.

Ken Smith, Director, Research & Information Services Kristi Sherrard, Publications/Graphic Design Specialist Hiroko Sedensky, Research Assistant Judith Short, Information Services Assistant Penny Carothers, Resource Desk Coordinator Bobbie Patterson, Resource Desk Coordinator

Scott Averbuch, Averbuch Realty

Finance & Administration

Marshall England, State Farm

Ken Williams, Finance & Administration Director Desman Holt, Network Admistrator Dora Heisey, Financial Assistant Erica Gussie, Financial Assistant Tom Burnette, Building Manager

Dick Fountain, Fountain, Parker, Harbarger & Associates

Joe Alexander, Camber Corporation Pete Apple, CSC Joe Austin, Huntsville Hospital John Cooper, Avocent

Leadership Sarah Savage, Leadership Director Allison Harbin, Leadership Assistant Mary Stewart, Youth Leadership Coordinator

Dr. Greg Gum, Radiology Associates Bill Gurley, SAIC Michael Hall, DaimlerChrysler Corporation Richard Holloway, Timberlakes Developers, Inc. Tharon Honeycutt, WHNT-TV Dr. Eric Janssen, SportsMed Donna Lamb, Lamb Commercial Services Millie Marshall, Toyota Motor Manufacturing-AL

Small Business Development

Jerre Penney, Bill Penney Toyota

Bill Killingsworth, Director, SBDC Carrie Davis, Assistant Director, SBDC Brenda McBride, Procurement Counselor Patsy Nayman, Executive Secretary 1 Felita Flores, Secretary 2 Hanson Howard, Executive Director, SCORE

Joe Ritch, Sirote & Permutt Remigius Shatas, Rymic Systems, Inc. Sandra Steele, Enfinger Development, Inc.

www.HuntsvilleAlabamaUSA.com

Dear Chamber of Commerce Investors and Community Leaders: This February edition of Initiatives Review magazine is the Chamber’s official 2003 review of local economic activity; however, this particular edition also serves a more far-reaching purpose. A major achievement for the Chamber of Commerce last year was the development of the Huntsville Regional Economic Growth Initiative, a plan which we expect to have a significant impact on economic development in our community for years to come. Development of the new plan required an incredible amount of leadership from a small group of Chamber directors strongly devoted to the future of our local economy. 2003 Chamber Chairman Howard Thrailkill inspired and led the visioning and planning process which resulted in the Huntsville Regional Economic Growth Initiative. Also participating in numerous planning sessions were 2004 Chairman Tommy Beason and Executive Committee members Dave Hargrove and Brad Jones. The Chamber of Commerce is fortunate to have a group of volunteer leaders so devoted to the future of our community.

Another major effort initiated last year was the development of the Chamber’s Base Realignment & Closure (BRAC) committee, co-chaired by Jim Link and Joe Ritch.

With an impact of space and defense programs measured at approximately 50 percent on the regional economy, support of Redstone Arsenal and Marshall Space Flight Center is a constant priority for the Chamber.

Last year’s economic development highlights included a number of expansion announcements by local industrial companies, and the addition of another foreign-based manufacturer. Matsu, Inc. of Canada joined Toyota, CINRAM, and others in accounting for 1,458 jobs with a combined capital investment of over $85 million last year.

Investor support is critical to the implementation of the Chamber’s programs, and a campaign begun last year, with a goal of $7.5 million in funding for the Chamber’s economic development efforts over the next five years, has had tremendous response from local investors. A new investor relations management program will ensure widespread communication about the Chamber’s activities with local investors. The HREGI also prompted a realignment of the Chamber staff, which is now organized into five operating divisions, including economic development, government affairs, investor relations, research and information services, and finance and administration. Two new positions were added, with Ethan Hadley hired as Vice President for Economic Development and Loren Traylor as Vice President for Investor Relations.

The Chamber Board of Directors and staff look toward 2004 and beyond with enthusiasm and confidence for the growth of our great community. Thank you for your support of our mission to position Huntsville as the “Technology Center of the South.”

Paula Steigerwald, Huntsville Botanical Garden Gerald Toland, Redstone Federal Credit Union Irma Tuder, Analytical Services, Inc.

Chamber of Commerce Huntsville • Madison County 225 Church Street Huntsville, Alabama 35801 (256) 535-2000

A Message from the President

Executive Committee

Johnnie Vann, Lanier Ford Shaver & Payne Bill Watson, SouthTrust Bank

Brian Hilson President & CEO Chamber of Commerce of Huntsville/Madison County

Jean Wessel-Templeton, Wesfam/Burger King Peri Widener, The Boeing Company Keith Wilson, Wyle Laboratories Tom Young, Intergraph Corporation

04

05 February 2004 Initiatives

Initiatives February 2004

2003: A Year in Review Regional economic boosts set the pace for the future

H

out more than 50,000 V-8 engines for Toyota’s popular Tundra pickup trucks.

Just weeks after going into production, the Japanese automaker added to its local impact by announcing a move into V-6 engine production at the Huntsville facility. V-6 production will take place in a 40,000 square foot expansion on the plant’s south end, budgeted for $20 million. This addition should add another 150 production jobs, according to Millie Marshall, Toyota of Alabama’s General Manager for Administration, to support the growing demand for larger engines in its truck, SUV, and larger sedan lines.

“With Toyota’s growth, we needed additional engine capacity,” Marshall said, “and Toyota was very impressed with the skills Sizable construction projects for 2003 and dedication of the local included NASA’s Propulsion Research workforce.” And there may be more to come. ToyCenter and Engineering Directorate as ota bought and opwell as continued expansion of the tioned almost 500 Sparkman Center on Redstone Arsenal. acres of the North Huntsville Industrial Park. MarToyota, the worldwide colossus of shall will only say that nothing has been automotive manufacturing efficiency, decided to date about any future expantook the spotlight for new job creation in sions.

2003 when its new 400,000 square foot Just a few miles away in Chase Indusfacility came on line in April. The trial Park, Cinram International Corpora$260 million investment added some 300 tion last year completed its second production and 50 support positions. expansion in three years. Cinram has enSince its opening, the facility has turned hanced its job creation reputation since untsville has long worn its aerospace and technology heritage like a comfortable suit of clothes. And although these governmentstoked drivers of economic development provided powerful, annual boosts of economic activity for many years, 2003 was in many ways different.

Last year’s big announcements of new and expanding facilities reflected new economic realities of the early 21st century: the rise of the global auto industry, biotechnology, and America’s insatiable appetite for entertainment. These provided the stimulus for another strong year in terms of capital investment and job growth, according to figures compiled by the Chamber of Commerce.

2001 with a series of expansions that more than tripled its plant size to more than 1 million square feet. Responding again to the mushrooming market for entertainment recorded on DVD and VHS videotape, the multimedia replicator invested $23 million in another huge expansion to its facilities. This latest investment added nearly 100 new jobs to the local economic base.

MATSU, which like CINRAM is headquartered in Canada, announced its selection of Huntsville for a new auto parts manufacturing facility. An existing facility in Lowe Industrial Park was acquired and is being expanded for this development, which includes 115 jobs and a $25 million investment.

A growing biotechnology presence is beginning to change the flavor of Huntsville business. The new Huntsville Biotechnology Center in Research Park is home to three small but growing biotechnology businesses, employing nearly 60. The largest, with 22 employees, is Open Biosystems, a low-cost provider of genomic and protein resources to researchers. Other tenants of the Center include Applied Genomics, a company working to develop tools used in cancer detection and classification, and Source CF, which provides a number of biotechnical, physical, and food supplement tools to fight cystic fibrosis. Leaders of continued on page 09

06

07 February 2004 Initiatives

Initiatives February 2004

2003: A Year in Review . . . continued from page 07

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all three firms agree the future looks cautiously bright for continued growth of biotechnology in Huntsville, saying last year’s expansion announcements prove there is life in biotech, despite the industry’s recent ups and downs.

But the big biotech news was Nektar Therapeutic’s announcement of an expansion at their Church Street manufacturing facility that will create an estimated 95 new jobs. After local biotechnology entrepreneur Milton Harris merged his Shearwater Polymers with national biotech giant Inhale Corporation in 2001, a decision was made last year to change the corporate name to Nektar.

Corporate names carry a lot of weight, and Huntsville General Manager Remy Gross says the new name puts the focus on injectable rather than inhalable drugs.

“We are setting up manufacturing for five drugs that have received FDA approval,” says Gross, “as well as two or three others we expect approval on.” All research and development, says Gross, will continue to be conducted at the new facility on Discovery Drive in Cummings Research Park.

After years of relative quiet, there were stirrings of activity in downtown Huntsville. Excitement began building over the past two years with the on-again, offagain talk of a variety of projects for the Big Spring Park area, ranging from a shopping and entertainment complex to a large, luxury high rise condominium. But downtown Huntsville will again reverberate to the sounds of big-scale construction with the City Council’s approval in December of the $11 million Big Spring Summit project, a major office building that, when complete, will add more than 75,000 square feet of Class A office space.

Construction should begin in the spring, with completion slated for summer 2005.

Steve Dingus, Assistant Planning Director for the City of Huntsville, feels the Big Spring Summit project will help energize downtown. “This should have a

really positive effect on Big Spring Park.

It will encourage people to come into downtown and use the park area. This will increase business for downtown restaurants and other businesses, and encourage other downtown developments, all of which are needed to make downtown more successful,” he says.

The downtown skyline will also get a boost from the new Embassy Suites hotel, for which construction is slated to begin in May 2004 on a 3.5 acre site at Monroe and Williams, across from the present Huntsville Hilton. The new hotel represents a $40 million investment, and when completed will be similar to the Embassy Suites off Interstate 65 in the Franklin, Tennessee area.

All this is not to say that growth is nonexistent in Huntsville’s venerable Federal

sector. Sizable construction projects included NASA’s Propulsion Research Center and Engineering Directorate as well as continued expansion of the Sparkman Center on Redstone Arsenal. 2003 also saw completion of a $10 million expansion to the National Space Science and Technology Center near UAH. In December, both Northrop Grumman and Lockheed Martin were awarded major missile contracts, which may result in new jobs for the Huntsville area in the coming year.

And local leaders are now excitedly wondering what might be the impact of the recent announcement by President Bush to ramp up manned space exploration, a move that may have a positive impact on Marshall Space Flight Center.

• Mike Kelley

08

09 February 2004 Initiatives

Initiatives February 2004

Shedding New Light for a Brighter Future Chamber’s Huntsville Regional Economic Growth Initiative sets new pace, goals for economic future of region

A

sk average Huntsville residents how their community’s economy is fairing in these uncertain times, and they will often respond positively, with pride and optimism. It’s true the Huntsville region appears to be in many ways growing and prospering. But is our community reaching its full potential?

According to a recent study conducted by UAH, the answer is no. When compared with cities similar in industry makeup, the Huntsville region is not hitting the marks that it should be. “Our growth rate in earnings per job, population, and employment opportunities are flat lining,” comments Tommy Beason, 2004 Chamber of Commerce Chairman.

This surprising reality is being directly countered with a brand-new vision for the Huntsville community’s economic future.

The vision is detailed in a plan called the Huntsville Regional Economic Growth Initiative (HREGI). Specified in the Growth Initiative are five key strategies – aggressive, innovative, and community-driven strategies aimed at strengthening and securing the Huntsville region’s economic future. Fresh light has been shining on the entire Initiative planning process from the beginning, and the results have the business community’s attention. “We realized that we weren’t just reloading and dusting off an old plan and polishing it up

a little bit, but rather we needed to go through a ground-up strategic planning process for the community’s long term economic development effort … that is intended to be permanent as opposed to something that lasts 4 or 5 years like EDGE or ADVANTAGE [the Chamber’s two previous economic development plans],” explains Chamber President Brian Hilson during a recent interview.

DEVELOPMENT Over a year ago, research that inspired the new Initiative began. The Chamber of Commerce launched an independent study during which business leaders in the Huntsville community were interviewed to discuss their opinions regarding past and future Chamber efforts. The study produced a report containing more than 400 valuable suggestions and ideas. During the months that followed, Chamber board members met frequently to study the information and use what they learned to develop a plan for the future.

The key people involved in the development of the Initiative were Howard Thrailkill (2003 Chamber Chairman), Tommy Beason (2004 Chamber Chairman), Dave Hargrove (Chamber Investor Relations Vice Chairman), Brian Hilson (Chamber President and CEO), and Jeff Thompson (former Chamber Chief

Operating Officer). “From the surveys, we learned that people are generally pleased with how we are doing, but they would like to see us raise the bar and compete more often with certain cities that are better known as high-tech centers – places like Austin, Texas,” comments Hilson.

INITIATIVES Nurture What We Have Today Two of the five defined Initiative strategies focus on limiting downsizing and job loss within our current economic base. Protecting and growing what exists today, including our defense and space industry, is crucial. An important objective in the immediate future is the preservation and possible growth of Redstone Arsenal during the 2005 Base Realignment and Closure (BRAC) process. “During the last BRAC round, Huntsville picked up jobs from St. Louis.

However, if we lost Redstone Arsenal, we would lose 50% of our economy,” points out Beason.

Recognize the Possibilities of Tomorrow The Chamber’s business and industrial recruitment efforts have yielded continued on page 12 11 Initiatives February 2004

Member Developments

Shedding New Light . . . continued from page 11

Member Developments

See Initiatives chart on page 19

thousands of excellent job opportunities and persuaded numerous high-profile employers to come to our area.

Continuing and expanding these efforts is vital to economic advancement. The new Initiative demands even more focus on this than past Chamber plans. Aggressive marketing campaigns aimed at business site location consultants and corporate decision makers will expedite growth.

As part of this strategy, Ethan Hadley has been added to the Chamber staff as Vice President of Economic Development.

He will focus his marketing efforts on stimulating more business prospect activity for the Huntsville area.

Foster Population Growth The recent study conducted by UAH illustrates that Huntsville job earnings, population, and employment opportunities are not progressing in a way comparative to similar regions. Particularly alarming is the decline in population of workers 19-40 years old. A critical component of growing an economy is securing a ready local workforce. After college, however, too many young professionals are leaving their homes in Huntsville to explore larger cities. Why? Do we need more entertainment options for young people? More musical events?

Sporting events? An improved downtown nightlife?

Defining and correcting these and other quality-of-life issues will not only inspire the “Huntsville Born & Raised” workforce to stick around – it will also make the Huntsville area a great place for newcomers to relocate.

Enhance National Image Inspiring community improvements is a first step.

Once the improvements are in place, the next step is to spread the word. In order to enhance our national image, people must know that these positive changes are taking place. Successfully achieving the goals of the Initiative will easily make the Huntsville area nationally known as the top technology-based region in the Southeast – both statistically and by reputation.

Redstone Federal Credit Union celebrated the opening of the new corporate

Blue Creek Securities, LLC celebrated its ribbon cutting on November 18, 2003. They

AJS Associates (Kentucky Fried Chicken) located at 1003 Jordan Lane celebrated

headquarters building on November 21, 2003, located at 220 Wynn Drive. L-R: Benny Rogers, Charles Ray, Mayor Loretta Spencer, and Gerald Toland.

are located downtown at 2003 Greene Street, 3rd floor, Huntsville, AL 35801. Phone 256-7045111 or toll free 1-866-730-6944. Please visit their website for any additional information – www.bluecreekip.com.

their 20th Anniversary with a ribbon cutting and cake cutting ceremony on December 20, 2003. Mayor Spencer and other dignitaries were honored guests. AJS Associates has been presented numerous awards and commendations for their excellence in service.

Apple Realty, LLC & Apple Rentals Property Management Co., LLC located in

Days Inn & Suites located at 1145 McMurtrie Drive celebrated their ribbon cutting

SURVICE Engineering celebrates opening its new Huntsville Regional Operation. SURVICE

Sullivan Square North in Madison, celebrated their Grand Opening in December. With over 16 years real estate experience, Donna Apple invites you to stop by her new office or call her at 772-9595 to sell, buy, or rent your home.

December 8, 2003. It is located off University Dr. west of Research Park Boulevard. For all of their accommodations and additional information call them at 256-971-9200.

is a small business providing combat system survivability and weapon system effectiveness support to DoD and system developers. For more information call 256-922-0762 or visit www.survice.com.

Jaguar and Land Rover Cars of North America proudly announced the Grand Opening of its newest dealer, Jaguar/Land Rover Huntsville. The full lineup of Jaguar cars and Land Rover SUV’s will be available at the Century Automotive, 3800 University Drive location.

Century Automotive also represents Buick, Isuzu, BMW, and Volvo vehicles.

Synectics’ ribbon cutting ceremony was held at the Chamber on January 13, 2004.

Synectics, based in Madison, is a network of creative and marketing professionals offering their clients communication solutions, along with the strategies and plans that help businesses grow. For information please call 256-658-3712.

YMCA celebrated its Grand Opening for the new multi-million dollar Metropolitan Huntsville’s family branch located at 1000 Weatherly Road opened in November 2003. Join today by calling 883-YMCA (9622).

IN THE FUTURE The Huntsville community’s economic future is heading in a new direction – a direction inspired by extraordinary community input, extensive research, and immeasurable dedication on the part of Huntsville business leaders. Fresh insight shines new light, showing the way toward a future abundant with opportunity.

• Mitzi Crawford

13

12 February 2004 Initiatives

Initiatives February 2004

Strategic Planning Committee – A Perfect Blend of Area Leaders Special combination of experience, knowledge, & talents

E

arly in 2002, a plan began to take shape within the Huntsville/ Madison County Chamber of Commerce building. The Chamber’s top executive management began developing a comprehensive five-year plan to position the Huntsville region as a leading economic growth center. These individuals spent long hours over a 4-month period carefully considering input from 56 Huntsville community leaders in order to craft the best possible plan. Upon completion, this plan, the Huntsville Regional Economic Growth Initiative (HREGI), comprised specific strategies (see chart on page 19) to enhance the Huntsville area’s economic growth and development over the next five years.

Today, this planning continues at the Chamber, now in the form of a Strategic Planning Committee headed by Brad Jones, Chief Executive Officer of Crestwood Medical Center and Vice Chairman of Economic Development for the Chamber Executive Committee.

The Strategic Planning Committee, a diverse blend of Huntsville area community leaders, was appointed to refine and direct the Growth Initiative and make it a “living” plan – a plan that can be continually adapted and modified to incorporate new information and ideas. This process will best ensure growing investment dollars for the Initiative and significant returns on those investments. Jones says, “Basically, we (the committee) are defining what we are going to be doing with the money and why they (Growth Initiative investors) need to invest.”

In addition to Brad Jones, the

Strategic Planning Committee includes Bob Ludwig of The Huntsville Times; Pete Apple of Computer Sciences Corporation; Tommy Beason of Beason and Nalley, P.C.; Mike Hall of DaimlerChrysler Corporation; Tharon Honeycutt of WHNT-TV; Irma Tuder of Analytical Services, Inc.; Clay Vandiver of Compass Bank; Peri Widener of The Boeing Company; and Halsey Wise of Intergraph Corporation.

As a result of ongoing research and

brainstorming, the Strategic Planning Committee has identified two additional areas of focus to complement the five growth strategies originally delineated in the plan. According to Jones, those new items are: (1) Engage the resources of Huntsville area universities and colleges to a greater extent; and (2) Develop the Huntsville area workforce by attracting and retaining more young professionals. continued on page 20

17 Initiatives February 2004

Economic Indicators POPULA TION

Economy At-A-Glance

Madison County

City of Huntsville

City of Madison

Huntsville Metro Area

35-Mile Radius

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

145,604

6,081

242,971

439,023

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

161,842

16,813

293,047

505,967 581,506

EMPLOYMEN T* NOV 2003

NOV 2002

Total Non-ag Employment .......................................................... 181,400

184,700

Mining & Construction .................................................................... 7,300

6,900

Huntsville Metro Area**

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

158,216

29,329

342,376

2003 Estimate ......................................287,117

159,636

*34,260

355,488

598,007

Manufacturing .............................................................................. 31,300

32,500

2008 Projection ....................................302,734

164,335

*39,729

375,964

626,450

Trade, Transportation & Utilities .................................................... 27,000

n/a

% Growth 1980-2003 ............................45.8%

9.6%

463.4%

46.3%

36.2%

Information ...................................................................................... 2,400

n/a

Financial Activity ............................................................................ 5,400

5,000

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

51,113

2,040

82,440

150,864

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

63,838

6,681

110,893

191,654

2000 Census ........................................109,955

66,742

11,143

134,643

229,284

2003 Estimate ......................................114,811

68,070

*13,175

140,703

237,445

2008 Projection ....................................123,387

71,672

*17,083

151,677

% Growth 1980-2003 ............................71.2%

33.2%

545.8%

70.7%

Professional & Business Services ................................................ 32,100

n/a

Education & Health Services ........................................................ 11,600

n/a

Leisure & Hospitality...................................................................... 15,500

n/a

253,191

Other Services ................................................................................ 7,300

n/a

57.4%

Government .................................................................................. 41,500

41,600

**Includes Madison & Limestone counties Source: Alabama Department of Industrial Relations (Place of work figures)

Race 2003 Population Estimate ....................281,117

159,636

*34,260

355,488

598,007

White ......................................................70.8%

63.3%

77.8%

73.2%

79.5%

Black ......................................................23.7%

31.0%

14.8%

21.7%

16.0%

Asian & Pacific Islander ............................2.0%

2.3%

3.7%

1.7%

1.2%

Other Races..............................................3.6%

3.4%

3.8%

3.5%

3.4%

Average Household Income ................$63,021

$61,025

$77,962

$60,858

NOV 2003

Huntsville Region (Counties)

NOV 2002

Madison ......................................................................................147,520

145,200 31,410

$56,892

Jackson ........................................................................................ 25,840

24,800 38,660

Median Household Income ..................$48,301

$48,324

$66,509

$46,754

$45,052

Marshall ........................................................................................ 39,970

Per Capita Income ..............................$25,450

$26,384

$29,896

$24,362

$22,809

Morgan .......................................................................................... 58,730

55,710

Median Age ................................................36.5

38.3

34.9

36.6

37.7

Franklin, TN .................................................................................. 20,610

19,020

Giles, TN........................................................................................ 16,210

15,950

Lincoln, TN .................................................................................... 15,350

14,870

Huntsville Regional Total ........................................................ 356,020

345,620

Source: ESRI Business Information Solutions, 2003; U.S. Census Bureau (www.census.gov) * City of Madison estimate comes from City of Madison

* Based on place of residence.

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

RETAIL SALES Huntsville Region - (000’s) 2002 Annual Retail Sales Madison Co.

Total Retail Sales

Food & Restaurants

Furniture & Merchandise

Automotive

$3,910,205

$736,594

$908,076

$978,414

$619,484

$141,111

$131,142

$132,976

Jackson Co.

$468,707

$117,990

$102,509

$89,452

Marshall Co.

$1,242,376

$164,795

$229,099

$579,074

Morgan Co.

$1,448,374

$287,895

$258,605

$419,366

Limestone Co.

Lawrence Co.

$245,369

$58,321

$38,133

$32,547

Giles Co. (TN)

$278,739

$56,429

$32,025

$84,589

Lincoln Co. (TN)

$300,730

$50,192

$65,715

$94,805

Franklin Co. (TN) Regional Total

$311,996

$102,760

$60,773

$54,711

$8,825,980

$1,716,087

$1,826,077

$2,465,934

UNEMPLOYMENT RATE*

NOV 2003

NOV 2002

Madison County .............................................................................. 4.7%

4.2%

Huntsville Region ............................................................................ 6.1%

5.3%

Alabama .......................................................................................... 5.8%

5.9%

United States .................................................................................. 5.9%

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 3rd QTR 2003

Composite Grocery Index Items

Housing

Utilities

TransHealth portation Care

Goods & Services

Source: Sales & Marketing Management, 2003 Survey of Buying Power — Printed with permission.

CONSTRUCTION ACTIVITY (cumulative to date)

# of Projects

DEC 2003 Square Feet

DEC 2002 $ Value

# of Projects

Square Feet

Atlanta, GA

96.9

98.9

92.3

91.1

101.7

103.7

99.7

Dallas, TX

96.0

97.0

90.1

89.4

101.0

103.8

100.4

Huntsville, AL

93.1

100.3

75.5

90.9

104.3

93.9

102.7

Orlando, FL

99.0

101.6

90.0

106.4

95.9

95.3

104.8

St. Louis, MO

103.8

116.6

100.6

92.4

101.4

98.9

106.0

Washington, D.C.

137.7

107.4

197.9

113.8

119.2

126.8

111.8

$ Value

Total Const. Contracts .................. 1,693

5,920,000

$441,926,000

1,623

5,632,000

$511,486,000

Commercial ...................................... 115

889,000

$59,615,000

167

1,546,000

$117,241,000

Manufacturing .................................... 11

107,000

$6,443,000

22

610,000

$52,138,000

Single Family .................................. 1,293

2,764,000

$107,260,000

1,239

2,649,000

$100,429,000

Multi-Family ........................................ 85

982,000

$41,114,000

28

213,000

$18,408,000

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

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

CONSUMER PRICE INDEX

DEC 2003

DEC 2002

% Change 02-03

Index

United States...............................................................184.3

1.9%

180.9

2.4%

South Region...............................................................177.5

1.7%

174.6

2.5%

Index All Urban Consumers

% Change 01-02

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

LEADING EMPLOYERS U.S. Army/Redstone Arsenal . . . . . . . . . . .11,141 Huntsville Hospital System . . . . . . . . . . . . .4,355 Huntsville City Schools . . . . . . . . . . . . . . . .3,000 The Boeing Company . . . . . . . . . . . . . . . . .3,000 CINRAM . . . . . . . . . . . . . . . . . . . . . . . . . . . .2,800 NASA Marshall Space Flight Center . . . . . .2,754 DaimlerChrysler Corporation . . . . . . . . . . . .2,500 City of Huntsville . . . . . . . . . . . . . . . . . . . . .2,186 Madison County Schools . . . . . . . . . . . . . . .1,936 Intergraph Corporation . . . . . . . . . . . . . . . . .1,750 ADTRAN . . . . . . . . . . . . . . . . . . . . . . . . . . .1,700

LABOR FORCE *

Limestone...................................................................................... 31,790

Income & Age

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 economic hub of the north Alabama and southern Tennessee regions. The counties adjoining Madison County combine to form an eight-county regional market with a population totaling 700,000 people.

HOME SALES DEC 2003

DEC 2002

Houses on Market.............................................................................. 3,393

3,290

Houses Sold & Closed.......................................................................... 535

388

Avg. Selling Price.......................................................................... $134,773

$137,344

Avg. Days on Market..............................................................................102

115

Median Sales Price........................................................................$113,999

$118,000

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.

Sanmina-SCI

. . . . . . . . . . . . . . . . . . . . . . .1,700

Walmart/Sam’s Stores . . . . . . . . . . . . . . . . .1,581 Northrop Grumman . . . . . . . . . . . . . . . . . . .1,350 Teledyne Brown Engineering . . . . . . . . . . . .1,338 Lockheed Martin . . . . . . . . . . . . . . . . . . . . .1,250 Computer Sciences Corporation . . . . . . . . .1,200 University of Alabama in Huntsville . . . . . . .1,112 West Corporation . . . . . . . . . . . . . . . . . . . . .1,100 SAIC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1,080 Madison County . . . . . . . . . . . . . . . . . . . . . .1,073 Source: Chamber of Commerce

Huntsville Regional Economic Growth Initiative

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.

Defense Huntsville/Madison County plays a key role in the U.S. Army’s technology development programs. More than half of the Army’s weapons procurement budget is managed by Huntsville-based operations as are more than half of the Army’s foreign weapons sales. More than 25,000 people are directly employed by the military and support contracts.

Electronics Over 300 international and domestic corporations in Huntsville/Madison County are involved in the design and production of electronics and computerrelated technology, including CINRAM, one of the world’s largest manufacturers of DVD products.

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.

Source: Huntsville Area Association of REALTORS (Realtor-listed properties only)

18

19 February 2004 Initiatives

Initiatives February 2004

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Strategic Planning Committee . . . continued from page 17

The first new initiative was added because research indicated a need to create more entrepreneurial activity in and around the Huntsville region. At present, our universities and colleges do help spur Government-related entrepreneurialism, but the committee sees a need to improve the universities’ capacities to spark and support commercial startup businesses and patents. The committee will delineate steps to achieve that goal.

The second new initiative was added in response to research suggesting the Huntsville community’s need to retain more young professionals in the workforce. The Huntsville area has been less successful at attracting and keeping such workers than have larger high-tech communities such as Charlotte and Austin – locations workers find appealing on many levels. The committee plans to address this issue and recommend ways to strengthen our community’s ability to draw and hold young workers.

The Strategic Planning Committee is now identifying specific tactics and actions to be implemented for all seven of the Growth Initiative strategies in order to accomplish the planned objectives and maximize the community investments made by the Growth Plan partners. These successes will, in turn, further encourage continued and expanded investments.

Each member of the committee brings unique experience, knowledge, insights, and talents to the Chamber, providing a perfect blend to yield the best possible plan of action for the Huntsville community’s economic growth and development.

• Dauna Coulter

Great Expectations New faces, departmental changes create anticipation, drive toward economic development endeavors

S

omething new is in the air at the Huntsville/Madison County Chamber of Commerce – a heightened sense of expectation, purpose, and confidence. You can see it in the faces of the Chamber officers and Executive Committee members. You can hear it in their voices. And no one exhibits this newly heightened focus more clearly than does Ethan Hadley, the Chamber’s new Vice President of Economic Development.

Hadley’s position and another new position, Vice President of Investor Relations, were added when the Chamber was restructured to most effectively support and serve the Hadley objectives of the Huntsville Regional Economic Growth Initiative (HREGI). Loren Traylor was recently selected to head the Investor Relations program. The Chamber now consists of five operating divisions (Economic Development, Investor Relations, Research and Information Services, Governmental Affairs, and Finance and Administration) that conform to the requirements of the Growth Initiative.

Brian Hilson, Chamber President and CEO, explains that, before the reorganization, the Chamber’s existing programs were “almost entirely captured in the Growth Plan or touched on them in some way,” so it made sense to realign the Chamber accordingly. He adds that, in

accordance with the Growth Initiative, the Chamber is “beginning a more intense marketing effort.” He says, “That’s one of the reasons we hired Ethan – to lead that process for us.”

As Vice President of Economic Development, Hadley will devote his time to marketing the Huntsville region.

He says, “My mission is to take our message to corporate executives and site location consultants in our targeted industries; to increase opportunities to educate these key decision makers and facilitators on all that the Huntsville region has to offer, from our excellent business climate to our superlative quality of living; to bring them here to see for themselves; and to continually refine and

expand our marketing activities.” He continues, “We aim to create a higher level of awareness and positive perception that will land us on the radar screens of an even greater number of companies when they shop around for investment locations and that, in turn, will lead to the creation of more quality jobs.”

Ethan was born in Charlottesville, Virginia; grew up in North Carolina; graduated from the University of North Carolina Chapel Hill; and then lived and worked in Japan for 15 years. He has “been around,” and he finds Huntsville to be very comfortable in every way.

To enhance the Chamber’s ability to attract and recruit new industry, the continued on page 22

20

21 February 2004 Initiatives

Initiatives February 2004

Great Expectations . . . continued from page 21

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Research and Information Services Division has created a new Web site (www.HuntsvilleAlabamaUSA.com).

The Chamber has also established a new Information Services Center to make available to the general public information gathered and prepared to assist companies and individuals.

Hadley looks forward to the opportunity to promote the Huntsville area.

In his most recent job, he worked with the Alabama Development Office as Director of Asian Business Development. Ethan sees his new position at the Chamber as a natural progression for his career. He promoted the Huntsville area in Japan during his past job, although he did not have the benefit of actually living here. He is happy to now call Huntsville his home.

Great expectations will be realized for the Huntsville community. Ethan Hadley, along with other dedicated Chamber executives, board members, and staff, have the know-how, dedication, and confidence to fulfill them through successful execution of the Huntsville Regional Economic Growth Initiative.

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• Dauna Coulter

22

23 February 2004 Initiatives

Initiatives February 2004

2004 Chamber of Commerce

Board of Directors Executive Committee

Tommy Beason Consultant, Beason & Nalley, P.C. Chair of the Board

R. Thomas (Tommy) Beason is the Past President of Beason & Nalley, P.C. in Huntsville. He is a 1968 graduate of the University of Alabama and earned the CPA designation in 1970. Beason began his career with Ernst & Young, and has owned his company since 1972.

Beason has more than 30 years experience in public accounting in areas including business advisory services, taxes, auditing and strategic planning for businesses. He served for eight years on the State Board of Public Accountancy and as Chairman for two of those years.

He is past President of the Huntsville Rotary Club, and has served on numerous boards of directors including Compass Bank of Huntsville and Volunteers of America. He served on the Administrative Science Advisory Committee at the University of Alabama in Huntsville, and his previous service to the Chamber of Commerce includes the office of Treasurer and Vice President for Small Business.

Beason is a native of Huntsville, and he and his wife, Jan, have two daughters and four grandchildren. He is a member and past Treasurer of Weatherly Heights Baptist Church.

Joe Ritch

LTG James Link

US Army Retired President, Teledyne Brown Engineering Chair-Elect

2004 Chamber of Commerce

Howard Thrailkill President & COO, ADTRAN, Inc. Past Chair of the Board

L. Joe Austin

Joel Daves, IV

CEO, Huntsville Hospital

N. Alabama Executive & Huntsville City President, AmSouth Bank

Vice Chair Workforce Dev. & Board Member

Board of Directors

Joe Alexander

Pete Apple

Scott Averbuch

John Cooper

President & COO, Camber Corporation

Director of Legislative Affairs & Community Relations, CSC

President/Broker, Averbuch Realty Company, Inc.

Chairman, President & CEO, Avocent Corporation

Marshall England

Dick Fountain

Dr. Greg Gum

Michael Hall

Agent, State Farm Insurance Companies

Agency Principal, Fountain, Parker, Harbarger & Associates, LLC

Radiologist, Radiology Associates

Plant Manager, DaimlerChrysler Corporation Huntsville Electronics

Richard Holloway

Tharon Honeycutt

Dr. Eric Janssen

Donna Lamb

Owner, Timberlakes Developers, Inc.

General Manager, WHNT-TV

President, SportsMed Orthopaedic Surgery and Spine Center

President, Lamb Commercial Services, Inc.

Millie Marshall

Jerre Penney

Remigius Shatas

Sandra Steele

General Manager of Administration, Toyota Motor Manufacturing of Alabama

President, Bill Penney Toyota

CEO, Rymic Systems, Inc.

President, Enfinger Development, Inc.

Paula Steigerwald

Gerald E. Toland

Johnnie Vann

Bill Watson

President, Redstone Federal Credit Union

Partner, Lanier Ford Shaver & Payne, P.C

CEO, SouthTrust Bank

Secretary

Mike Gillespie

Bill Gurley

Chairman, Madison County Commission

Senior Vice President & Group Manager, SAIC

Chair Appointed

Chair Appointed & Board Member

Dave Hargrove

Brad Jones

Regional Manager, External Affairs, BellSouth

CEO, Crestwood Medical Center

Vice Chair Investor Relations

Vice Chair Economic Development

Partner, Sirote & Permutt, P.C.

Scott Seeley

Loretta Spencer

Senior Vice President, Regions Bank

Mayor, City of Huntsville

Vice Chair Governmental Affairs & Board Member

Vice Chair Research & Information Services

Chair Appointed

President & CEO, Huntsville • Madison County Botanical Garden

Karen Stanley

Irma L. Tuder

Gail Wall

Vice President Finance & Marketing, Stanley Construction

President & CEO, Analytical Services, Inc.

CPA, VP of Information Technology & Director, Beason & Nalley, P.C.

Jean WesselTempleton

Peri Widener

Keith Wilson

Tom Young

President, Wesfam Restaurants, Inc.

Huntsville Site Senior Executive, The Boeing Company

General Manager of Test, Eastern Operations and Utility Services, Wyle Laboratories

Vice President, Intergraph Corporation

Vice Chair Small Business

Chair Appointed & Board Member

Treasurer

24

25 February 2004 Initiatives

Initiatives February 2004

26 February 2004 Initiatives

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