Montgomery Business Journal – November December 2011 by Montgomery Area Chamber of Commerce

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Contents

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Chairmanâ&#x20AC;&#x2122;s Column

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7 Calendar

Q&A with Amy Brabham

Guest Commentary by Lanny Crane

Guest Commentary by Brandon C. Oakes

Success Unlimited Academy grows during challenging economic times

I-65 Corridor retail incentive program pays off

Artist renderings of Alabama State Universityâ&#x20AC;&#x2122;s on-campus football stadium

Alabama Business Confidence Index declines in the fourth quarter

Member Profile: Bluewater Broadcasting

Montgomery + Korea: A Relationship that Works

Success Starts Here tour highlights expansions of existing industries

The City of Montgomery unveils retail incubator

Business Buzz

Members on the Move

Ribbon Cuttings & Ground Breakings

New Members

Economic Intel

NOv/Dec 2011

November/December 2011 Montgomery Business Journal

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THE NUMBER ONE BUSINESS SOURCE FOR MONTGOMERY AND THE RIVER REGION PUBLISHER

Randall L. George Executive Editor

Tina McManama Managing Editor

David Zaslawsky Editorial assistanT

LaShanda Gaines Design

Copperwing Design Photographer

Robert Fouts On the cover:

Gyou Chul Lee is president and CEO of Hyundai Power Transformers USA, which built a manufacturing plant in Montgomery. Advertising:

Linda Drumheller 334-240-9494 mbjsales@montgomerychamber.com

Montgomery Business Journal c/o Montgomery Area Chamber of Commerce Post Office Box 79 41 Commerce Street Montgomery, Alabama 36101 Telephone: 334-834-5200 Fax: 334-265-4745 Email: mbj@montgomerychamber.com www.montgomerychamber.com/mbj

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Montgomery Business Journal November/December 2011

The Montgomery Business Journal (USPS NO. 025553) is published monthly except for the combined issues of June/July and November/December, by the Montgomery Area Chamber of Commerce, 41 Commerce Street, Montgomery AL 36104, (334) 834-5200, www.montgomerychamber.com. Subscription rate is $30 annually. Periodicals Postage Paid at Montgomery Alabama, 36119+9998, USPS NO. 025553. Volume 3, Issue 10. POSTMASTER send address changes to Montgomery Business Journal, c/o Montgomery Area Chamber of Commerce, P.O. Box 79, 41 Commerce Street, Montgomery AL 36101, or email mbj@montgomerychamber.com. The Montgomery Business Journal welcomes story ideas from its readers. Email to: editor@montgomerychamber.com. Subscriptions are a part of the Montgomery Area Chamber of Commerce dues structure. Subscriptions can also be purchased for $30 per year at www.montgomerychamber.com/mbjsub.

changing the landscape 139th

MontgoMery area chaMber of coMMerce

annual MeeTinG and recepTion

chairman of the board of directors larry d. Puckett cordially invites you to

Presenting sPonsor

The MeeT and GreeT of The Year Monday, deceMber 5, 2011 The meeting will begin promptly at 5:30 p.m. gold sPonsors

MontgoMery PerforMing arts centre 201 Tallapoosa Street, Montgomery, Alabama 36104 A Reception will follow in the Alabama Ball Room of the Renaissance Montgomery Hotel & Spa at the Convention Center

beasley, allen, crow, Methvin, Portis & Miles, P.c. the colonial company Merchant capital, llc

$75 - Individual Ticket (Member) $95 - Individual Ticket (Non-Member) register by noveMber 28 www.montgomerychamber.com/annualmeeting

November/December 2011 Montgomery Business Journal

Chairman’s Column Last month’s MBJ cover summed up today’s Montgomery in three simple words: Poised for Greatness.

h o l i d ay e v e n t s

Book your Christmas party now!

I think everyone agrees the stars are lined up for Montgomery and the River Region. So how did we get so lucky? I in no way believe luck had anything to do with it. We are standing at a unique moment in time in this community, poised for greatness, because a lot of caring people got involved, identified the challenges and opportunities, came together, and worked to make Montgomery a better place for all of us. It truly is amazing what happens when nobody cares who gets the credit. As we have imagined a greater Montgomery, strong partnerships have formed among our city, county, state, and national elected leaders as well as volunteers from our military, business and education communities. By reaching for the stars and investing their time, talents and money, these caring people are making Montgomery and the River Region a better place for all of us. We have a rich history of people coming together to do just that. In 1909, Chamber Chairman Fred Ball saw one of the Wright Brothers walking down Commerce Street and discovered that they were in need of a site for a flying school. The community rallied, found a site, provided a barn, and today Maxwell Air Force Base stands as a living legacy to what can happen when people work in partnership to seize opportunities for the betterment of all.

Have yourself a merry little Christmas party at Alley Station! Enjoy mild Alabama evenings on the Rooftop Terrace, close enough

Fast forward 100+ years, and caring, committed people are still paying civic rent because they believe in the greater good. That is why Montgomery and the River Region are poised for greatness. I am thankful for the hard work of so many, and want to challenge you to get involved in making Montgomery a better place. Your kids and grandkids will thank you.

to reach up and touch Santa’s sleigh. Or bring it indoors where the gorgeous Ballroom is ready for small, intimate gatherings or all-out holiday bashes—up to 700 people. Beautiful Rooftop Terrace (Seats up to 350)

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Montgomery Business Journal November/December 2011

Larry D. Puckett, 2011 Chairman of the board Montgomery area chamber of commerce

Calendar Montgomery Area Chamber of Commerce Events

NOVEMBER 1

DECEMBER 1

RIVER REGION ECONOMIC SUMMIT 7:00 AM @ Renaissance Hotel & Spa at the Convention Center 201 Tallapoosa Street, Montgomery Registration: www.aum.edu/theforum

WOMEN IN BUSINESS ANNUAL GATHERING Presenting Sponsor: Southeast Cherokee Construction, Inc. 5:30 PM @ Wynlakes Golf & Country Club 7900 Wynlakes Boulevard, Montgomery Registration: www.montgomerychamber.com/ wibgathering

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FREEDOM ISN’T FREE! MILITARY APPRECIATION INITIATIVE Presenting Sponsor: Dreamland Bar-B-Que, Gold Sponsor: Supreme Cleaning, Inc. Nov. 11 - Veteran’s Day Parade VIP Reception Sponsor: City of Montgomery

BUSINESS PLANNING SEMINAR 4 PM @ Small Business Resource Center 600 South Court Street, Montgomery $10 at the door, Registration not required

60 MINUTE COFFEE Sponsored by Guardian Credit Union 8 AM @ Guardian Credit Union 418 Madison Avenue, Montgomery Free event, exclusively for Chamber Members

EGGS & ISSUES WITH CONGRESSWOMAN TERRI SEWELL Presenting Sponsor: Alabama State University, 7:30 AM @ RSA Activity Center, 201 Dexter Avenue, Montgomery Registration: www.montgomerychamber.com/sewell POINT OF LIGHT AWARD RECEPTION Presenting Sponsor: Advertiser Media Group, 5 PM @ Union Station, 300 Water Street, Montgomery Registration: www.montgomerychamber.com/light

BUSINESS PLANNING SEMINAR 4 PM @ Small Business Resource Center 600 South Court Street, Montgomery $10 at the door, Registration not required

BUSINESS AFTER HOURS Sponsored by Charlotte’s Jewelry, 5 PM @ Charlotte’s Jewelry, 8161 Vaughn Road, Montgomery, Free event, exclusively for Chamber Members 139th Annual Meeting & Reception Presenting Sponsor: Alabama Power 5:30 PM @ Renaissance Montgomery Hotel & Spa at the Convention Center, 201 Tallapoosa St., Montgomery Registration: www.montgomerychamber.com/annualmeeting BUSINESS PLANNING SEMINAR 4 PM @ Small Business Resource Center, 600 South Court Street, Montgomery, $10 at the door, Registration not required

6 14

CHAMBER ORIENTATION Sponsored by Heartsill Payroll, 8 AM @ Montgomery Area Chamber of Commerce, 41 Commerce Street, Montgomery, Registration: www.montgomerychamber.com/orientation 60 MINUTE COFFEE Sponsored by MAX Credit Union 8 AM @ MAX Credit Union, 400 Eastdale Circle, Montgomery, Free event, exclusively for Chamber Members PAYROLL TAX UPDATE Presented by Jackson Thornton 8 AM @ Embassy Suites Montgomery Hotel and Conference Center 300 Tallapoosa Street, Montgomery Registration: www.montgomerychamber.com/payrolltax

BUSINESS PLANNING SEMINAR 4 PM @ Small Business Resource Center, 600 South Court Street, Montgomery, $10 at the door, Registration not required

Convention Calendar compiled by the Montgomery Area Chamber of Commerce Convention & Visitor Bureau

NOVEMBER 11/ 2 - 11/ 4

Gulf Region Intelligent Transportation Society Meeting

11/16-11/19

Beasley Allen Legal Conference

11/30-12/3

Alabama Education Association Delegate Assembly

DECEMBER 12/6-12/9

Pipeline Safety Training Conference

November/December 2011 Montgomery Business Journal

Focusing on jobs Q&A with Amy Brabham Amy Brabham is the director of the Workforce Development Division of the Department of Postsecondary Education. She was recently interviewed by Montgomery Business Journal Managing Editor David Zaslawsky. Montgomery Business Journal: What is the Office of Workforce Development?

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Amy Brabham is the director of the Workforce Development Division of the Department of Postsecondary Education.

Brabham: We have a workforce training system. We’ve developed that and been charged by Gov. (Robert) Bentley to be responsible for part of the retention piece of the economic development plan for the state. What we’ve done to do that particular retention piece … the pieces are recruit, retain and renew in the economic development plan. MBJ: What is renew? Brabham: It is more of the technology transfer, new ideas. The way we have it pictured now is that the four-year colleges develop products and put them in the marketplace. The retention piece is really what our responsibility is and has been for years. The community college system in general has 81 sites; 26 community and technical colleges. We also have AIDT (Alabama Industrial Development Training) and ATN (Alabama Technology Network). All of those entities have workforce development divisions at each location. We are focused on existing businesses and industry. What kind of training needs might they have? What kind of workforce might be upcoming? What kind of trends they see? We look at that training piece under that retention area. We do have funding that comes into this office.

Montgomery Business Journal November/December 2011

MBJ: Where do the funds come from? Brabham: It comes from the Education Trust Fund so it is legislatively enacted for us to have – we have workforce development and what’s called Special Populations Funds. Those two funds together make up the budget for this office. MBJ: How much is your annual operating budget? Brabham: It’s around $9 million this year. MBJ: Is the Office of Workforce Development the umbrella organization or an equal partner with all the other entities? Are you the CEO of the retention piece of the economic development plan? Brabham: We are the umbrella organization/ connector piece to all those entities. The Department of Postsecondary Education is the operational entity for the entire community college system. We break our department into divisions that have to do with different pieces and parts of the community college system. MBJ: What are your responsibilities as the director? Brabham: We have two streams that we work through: The workforce training system is one of those – connecting those dots and bringing all those training resources together. Something new we started is Workforce Resource Team. It is a structure built to work behind an economic developer. MBJ: Do you have an example? Brabham: We started one in St. Clair County in Pell City, that’s our first one. Don Smith, who is over the St. Clair Economic Development Council, really had needs of structure behind him to understand what resources are available for business and industry through state and federal funding sources. We created these teams that gather folks from each one of the organizations that have something to do with state and federal resources.

MBJ: Are those Workforce Resource Teams more for economic developers in rural communities instead of the metro areas, which would have much greater resources? Brabham: It really just depends. We’re sending our teams out in the state and the economic developer will determine how it’s used.

It was more generic than training. We were just really trying to get the pulse of what is going on. MBJ: By bringing in different people from different entities, it gives you different perspectives.

MBJ: All sizes of economic development entities could benefit from that.

Brabham: The challenge is that we have so many resources that if a business or industry tried to keep up with all the state and federal resources – that’s all that they would do.

Brabham: We piloted this (program) with the Montgomery Chamber.

MBJ: Your agency expands the resources available to business and industry.

MBJ: Please tell me more about the pilot program with the Montgomery Area Chamber of Commerce.

Brabham: Correct.

Brabham: We are partnered with the Economic Development Partnership of Alabama (EDPA). The Montgomery Chamber and EDPA wanted to go out and talk to existing business and industry. We gathered several folks: myself from this office; Ed Castile from AIDT; the Montgomery Chamber had a couple of people; we had the Alabama Technology Network. We had four or five folks that went to three different companies and we sat around the table and literally just talked about what is going on in the industry.

Brabham: Currently, we have three and are planning our fourth team to start.

MBJ: How many Workforce Resource Teams do you have?

MBJ: What are some of your other responsibilities as director of the Workforce Development Division? Brabham: The other large piece for our office is how we move our funds from Montgomery down to the regional level. It’s very important to us not to make decisions here in Montgomery in a vacuum. It makes no sense. We have Workforce Development

Councils of Alabama. We have 10 of them across the state. This has been in existence since 2007. All of our budget except the earmarks move through these councils through a grant process. These councils are made up by the economic developers, business and industry and elected officials. The grants come to them and according to a strategic plan for that particular region they actually accept grants (that meet those goals). Essentially we are looking at regional workforce development. We may be here in Montgomery, but we push everything down to the regional level. MBJ: Because they know better what is going on in their region. Brabham: Absolutely. We should not be telling those people, “We know what’s best for you.” MBJ: What are some other roles the agency has in economic development? Brabham: We have something called the Career Ready Alabama Initiative. That is an initiative that connects the ACT work keys assessments to business and industry needs. It’s more of an HR tool so that the HR folks can know what skill sets (job candidates) are Continued on page 10

November/December 2011 Montgomery Business Journal

Continued from page 9

coming in with. Instead of an A in algebra, it tells an HR manager exactly what that individual can do. We do that across the state and currently those certificates are free. The individual takes the assessment and then has something to present to an employer. MBJ: Any other programs? Brabham: We have an apprenticeship effort. The Department of Labor came to us last year and identified Alabama as one of those states that doesn’t utilize registered apprenticeships as much as some other states. They asked us to look at that. We formed an Alabama Apprenticeship Council. We had a three-day workshop on what do we have in Alabama? What are we missing? How can we get apprenticeship back into the learning method of K-12 and for secondary and employers? We are walking down that path now. Austal in Mobile has a strong apprenticeship program and we are looking at moving that into the K-12 system along with postsecondary and then moving some of those programs around the state. MBJ: Are there other programs? Brabham: One other very large initiative is… several years ago we talked with our Region 9 Council, which is Mobile and surrounding counties. Their business council as part of that group came to us and said, “We’re having a challenge with industrial maintenance folks. Everybody doesn’t have the same skill set – some people have instrumentation and some don’t. What can we do to standardize the programs that individuals graduate from in the five community colleges in our service area?” We had an opportunity to write a federal Department of Labor (DOL) grant. We wanted to see how we could mobilize something without the institutions having a very large capital outlay. The challenge is when you have industrial maintenance programs the expense is tremendous. We wrote a grant for mobile training units. Currently we have five mobile training units down in the Southwest Alabama corridor in all counties and they rotate.

MBJ: Are all the mobile units for the industry maintenance program?

MBJ: How much was that grant for?

technical classes, which our budget does pay (with) an allocation of at least $2 million a year. It pays for career technical classes for high school students. We try to get that pipeline ready so that we’re not behind the 8-ball in a few years. That’s a big concern for us. We document skills and we are able to prove to new companies that come to town to look at different skill sets. I really think that we have a strong workforce that is willing to do lots of different things.

Brabham: The grant was $4.9 million. We have three more units on order for more advanced skills training for that region.

MBJ: What are the goals coming from the governor’s office? What are your marching orders?

MBJ: Why are the mobile units in the one region?

Brabham: Jobs, jobs and jobs. I think that is probably everybody’s marching orders. This workforce training system was developed in our community college system to address just that. How can we get more folks in the pipeline? How can we get more folks trained to be ready for these industries that expand, locate? I’ll throw a statistic that is a moving target all the time: AIDT alone is looking for 23,000 workers today – for the expansions and the new businesses that have announced across this state.

Brabham: Yes, concentrated on that one thing that a group of businesses came to us about and we can also train incumbent workers at business and industry facilities. Now we have the capability of driving a unit and to park it in a parking lot and train the folks right there on site where the company is.

Brabham: Everybody wants them. We started there because the businesses came to us. Aviation is very interested in doing this. MBJ: What are some of the key issues facing Alabama’s workforce? Brabham: Skills training is certainly the first thing that comes to mind. We have an awful lot of folks that No. 1, don’t have a GED or high school diploma. The number we use is about 800,000 and 500,000 of that number is of working age. That is a focus for us. How do we get those folks that basic credential to get into the door and at the same time we’re looking at now, is, how do we – while they are in GED training – get them through skills training? So when they finish that GED they also have what we call a short-term certificate or the beginnings of something they can go in and have a technical skill. MBJ: Are you making any progress? Brabham: The number is large. When you’re talking about 500,000 it’s hard to see that come down very significantly, but certainly we are chopping away at that – piece-by-piece. MBJ: We hear so often companies praising Alabama’s workforce and have an international reputation. How do you describe Alabama’s workforce? Brabham: We do have a very strong workforce. We have a very willing workforce to do many, many things. The challenge we face is the technology that is coming and is already here. Now, you just can’t graduate from high school and have a job. What we try to do is put an individual through dual-enrollment; career

MBJ: Don’t those 23,000 jobs require strong skill sets? Brabham: They do. We deal with highly skilled IT professionals all the way to a basic production skill level. The gamut is very, very wide. That’s why we use our community colleges that are very local and can tap into those skills they can train. MBJ: You’re saying the jobs are here, but employers need workers with a more developed skill set. Brabham: Many times we have folks, but we might need to tweak their skills. They might need six weeks of training to get that skill set or it may be two years. It just depends on what is required. The fact that we know what those 23,000 jobs entail – then we match the individuals with those skill sets. If they need something, that’s where we pull in our federal WIA resources from ADECA and the Department of Industrial Relations and our state. Oftentimes we partner funds or programs or whatever it may be to get that done. MBJ: This is not an issue that is particular to Alabama. This is a national issue. Brabham: Look at the skills gap report that has recently come out. That is something that couldn’t be more true. We have a skills gap, but it’s what we do to fill that skills gap. I think Alabama is very poised (to fill that gap).

Montgomery Business Journal November/December 2011

MBJ: Do you have any idea about the total number of available jobs that would be filled if the applicants had the required skill sets? Brabham: I don’t. We know what the AIDT parameters are and there are many, many things outside of that, especially small, small businesses, which is something we are trying to start focusing on – mom-andpop (businesses) up to 10 employees. The state doesn’t usually focus much on small businesses. The governor has asked us to focus on small business because that does turn an economy. Those are the folks that are going to hire folks; they are going to keep them on; and they are going to continue to expand. MBJ: On the agency’s website it states: “At no time in Alabama’s history has workforce development been more important. Education and skills training are the keys to economic success, individual prosperity, and a great quality of life.” From what you have said, aren’t employers looking for more and more sophisticated skill sets? Brabham: Look at manufacturing and production. Many years ago, it was easy to graduate from high school or not and go into a facility and operate a machine – a production worker. If something goes wrong,

you call a mechanic. If something else goes wrong, you call an electrician. Today, production workers have to know how to do those basic things. They have to be able to fix their machines. They have to be able to look at quality as their products come by. We are looking at going from a single skill set to an employee that has wrapped skill sets from multiple areas. MBJ: Employers are expecting much more from their employees. Brabham: Yes, more knowledge; more problem-solving skills; more reaction of what I do in a situation. Process improvement and continuous improvement – those are the buzz words. It’s been around forever, but now it is something that every employee in a company needs to do and needs to be able to make that company profitable. MBJ: What would you like to see from the Office of Workforce Development five years from now? Brabham: We really want to keep everything regional and to reduce that gap from a high school graduate at 18 to our average age to come into skills training of about 26 to 27. That eight-year gap in training really creates problems. We want to move that age backwards and capture folks earlier

by getting the word out by using things like career coaches; by using programs to capture somebody earlier so we get that training and get that worker when we need them in the beginning. MBJ: Why is there that eight-year gap? What are the factors? Brabham: Many of them are family factors – a need to go out and immediately work. Some simply can’t afford college of any level. While community college costs about half of a fouryear institution, it’s still a cost. So it depends if they can qualify for Pell grants. If it has to come out of pocket, where do I get it? If I had to go to work to go to school… there’s a conflict of what do I do first. Maybe they start to have families and (realize) they can’t live on the salary they have. “Maybe I should get some skills, training and get a better job.” MBJ: Anything else you would like to see five years from now? Brabham: I would like to see us as a coordinated training system partnered so well with economic and workforce development that it would be like they don’t exist separately – it’s so seamless that we all know what happens; we all know the plan; and it works without a hiccup. •

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November/December 2011 Montgomery Business Journal

Guest Commentary

Jackson Thornton Divulges ‘Secret Sauce’ to Investing by Lanny Crane

2011 has been a year of different performance leaders and laggards in the array of investment choices. 2012 will probably be more of the same – changing leadership. The investor’s dilemma is the inability to identify the who and the when before the fact. Old adages still display a lot of wisdom: > The market will do whatever it has to do in order to prove the greatest number of investors wrong (because many investment decisions are driven by emotions and the pull of greed and fear). > Every stock (and bond) is good at a certain price and bad at a certain price. > Eventually, every stock will disappoint you. > No one knows the right price for gold. (It has no earnings, pays no dividend or interest and thus has no internal rate of return.)

The market prices every stock every day and those prices encompass all known information about each stock. The market is the millions of investors worldwide who independently buy and sell based on their own self interest and all having access to all legal information about each company. Markets display remarkable, not perfect, efficiency at sorting through risk and return profiles and setting fair security prices. Investors and their advisers should be cautious about judging their ability to be smarter than the market even if they have had successful outcomes in the past. One never knows if past success was the result of skill or just random good luck. Over-hanging the fundamentals of good companies, sound strategies and effective implementation is the psychology of the market – Mr. Market. Many things influence his mood – high unemployment, mortgage foreclosures, Greek debt, Euro concerns, an ineffective Congress, constant bombardment by a negative financial media and so on. Mr. Market is emotional and moody and his mood can change in an instant. He can go from irrational exuberance to deep despair. These mood swings affect the momentum of market prices. Maybe a better approach to investing in 2012 and any year is to recognize that it is unlikely that you or your advisers are smarter than the market and you can’t insulate yourself from its moods. You should take a long-term view, build your portfolio based on science rather than hope and diversify your asset allocation between stocks and bonds and the sub allocations within each to match your need, ability and willingness to take investment risk.

Montgomery Business Journal November/December 2011

A new client recently asked one of our advisers, “What’s your secret sauce?” That question had never been asked to us in those words. Well, the sauce only flavors the entrée and the entrée is the market. We can’t control or predict its ups and downs; but we can flavor them. So here is our secret sauce: > Globally diversify the asset allocation based upon the academic evidence of risk and return. > Implement the asset allocation using passively managed investment vehicles. > Stay disciplined to the asset allocation of your investment plan. > Rebalance to correct asset allocation imbalances caused by market movement. > Monitor actual results to appropriate benchmarks on a regular basis as a way of keeping score. > Re-evaluate your investment plan and its asset allocation if your situation changes. > Be patient. Perhaps the first three ingredients of the sauce need some clarity. Most investors heavily concentrate their holdings in U.S. domiciled companies, but these companies represent only 44 percent of the value of the global markets. Investors further concentrate their U.S. holdings in U.S. large company growth stocks. The evidence from financial research suggests that smart portfolio management includes diversifying worldwide and including all asset classes – large company, small company, growth stocks, value stocks, real estate and commodities. Avoid the

temptation to overweight current leaders and underweight current laggards because performance leadership continually changes. Today’s leader will eventually become tomorrow’s laggard. Implementation of such a strategy may sound complicated and costly but it can be demystified and cost effectively constructed using asset class mutual funds as the investment vehicles. Many investors are familiar with S&P 500 (U.S. large company) index funds, but it is just one of many asset classes which should be included in an effectively diversified portfolio. Achieving a desired allocation between asset classes is based on the evidence of risk and return. We build portfolios providing investment exposure to 12,000 U.S. and foreign stocks, or about 70 percent of the world’s publicly listed-securities. After an overall asset allocation is selected, the next decision is whether to implement it using an active management strategy or a passive management strategy. Active

we don’t like the result. 2011 will likely end as one of those periods. U.S. large company stocks are performing better than a diversified portfolio including foreign and emerging market securities, and large company stocks are performing better than small company stocks.

management is the process of studying security analysts’ earnings forecast and gleaning all information sources in a search for mispricing of specific stocks. This is very difficult to do successfully and consistently. It’s like looking for a needle in a haystack. Another approach, and the one we advocate, is to use passively managed investment vehicles which accept the principles that: Market forces have identified fair prices for each security, tomorrow’s news (not knowable today) will cause rotation of leaders and laggards among and within each asset class and that patient holding and rebalancing will give the investor market rates of return.

Properly constructed, a broad globally diversified portfolio can have higher expected returns and lower volatility than the general market. This is what we refer to as the power of diversification. Once in place, the next challenge is to be patient, remain disciplined to the plan and tune out the noise which drives our emotional urge to make changes. Wise investing is not complicated; it’s just not easy to sustain over the long term due to one’s emotions. An essential part of an investment adviser’s role is to protect the investor from making emotional decisions. •

Never confuse strategy and outcome, especially short-term outcome. Wise strategies and their asset allocations can have disappointing results and flawed asset allocations can sometimes have very pleasing outcomes.

Lanny Crane is a certified public accountant with Jackson Thornton Asset Management.

Broad global diversification is our mantra. Diversification always works, but sometimes

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Guest Commentary

Expert: Recommends Devising Investment Policy Statement by Brandon C. Oakes

As 2011 comes to a close and 2012 begins there are many issues drawing investors’ attention. Problems in Europe, natural disasters, government debt, unemployment, and politics continue to be in the headlines. While I would not suggest ignoring these concerns, as they are important, I want to share some key concepts that I use with my clients to assist them with their investment strategy.

I recommend that investors build their portfolios in the context of a broader financial plan. An analogy I use many times is a travel agency. It would be unlikely that one would call a travel agent and say “I want to travel. Book a trip for me.” Where are you going? Do you wish to fly, drive, take a train, or travel by sea? I bring this up because without knowing your goals your destination and appropriate investment vehicle are unknown. I recommend to my clients that they establish goals so I know where they wish to go. I work with them to obtain a good idea of how comfortable or uncomfortable they are with risk. They are also encouraged to develop a list of existing resources such as 401(k), CDs, brokerage accounts, real estate, IRAs, and current income along with other financial items. Once you know your resources, risk tolerance, and destination you are in a much better position to build your investment portfolio. Investors should be very aware of tolerance for risk. One may also find it wise to take a close look at how they react when their nerves are tested. Some will find that their previous thoughts about risk may be different when faced with challenging scenarios. I will frequently ask clients if they opened their statement and found that they lost 30 percent to 40 percent of their money how they would react. What if they made 30 percent to 40 percent? This is a rather extreme example, but it is vital to acquire

Montgomery Business Journal November/December 2011

a good idea of one’s likely reaction to high volatility. The flipside is true as well. Euphoria, think tech bubble, can be just as damaging as extreme pessimism. Emotions can interfere with more logical decisions. Keeping a cool head and a disciplined approach to investing will be crucial at polar ends of the emotional spectrum. This holds true for conservative, moderate, and aggressive investors. I suggest to clients that they work with us to develop an investment policy statement or IPS. The IPS states the general investment objectives and the method of management that should be used to meet these objectives. Information regarding risk tolerance, asset allocation, and liquidity needs may also be included. This document is extremely helpful. In the IPS the investor will find the suggested mix of equities, fixed income, and alternative investments. How does this help? If the Investment Policy Statement says that the portfolio should be positioned with 40 percent fixed income, 50 percent equities, and 10 percent alternative investments this is the target allocation. Over time the portfolio may move away from the target allocation, causing an investor to have more exposure to one or more of the asset classes than previously suggested. When this occurs rebalancing may be needed. Rebalancing takes place as you move your investments back to your target allocation. This may assist in avoiding attempts to time the market. Rebalancing may also be beneficial from a risk management perspective. If your target for equities is 50 percent and you now have 55 percent, adjustments may be needed.

Two major pitfalls investors should watch out for are highly concentrated exposure to one company or sector and making major changes to their target allocation at either end of the emotional spectrum. Too much exposure to one stock or sector may destroy your investment portfolio. How much is too much? I advise my clients to limit their holdings in one stock to 5 percent or 10 percent maximum. This is even more important if it is your employer’s stock. We have a large part of our financial lives linked to the companies we work for be it health insurance, retirement, life insurance, and the food on our table. This creates a risk unique to us and our co-workers. Sometimes individuals may think they have a diversified mix of equities when what they have are 10 companies in the same sector sharing very similar risk characteristics. What happened to that basket of tech stocks in 2000? How about all those financial stocks during 2008? I recommend that my clients have companies from different sectors, sizes, and countries.

This may assist in avoiding a one-company or one-sector disaster. When we grow close to the euphoric or pessimistic end of our emotional range it can cause emotions to trump logic. Again I would cite the tech bubble and the fall of 2008. These are times when one may be tempted to keep buying stocks hand over fist even though their IPS says they should have 50 percent in equities; they now have 70 percent and should consider selling some to rebalance. The other side of this scenario may occur when equities, or other asset classes, have been in free fall. Now the portfolio may have 40 percent in equities and one should consider shifting funds from another investment into equities so they meet the target of 50 percent. Our own fear or greed may drive us to decisions that violate

our Investment Policy Statement. One may be doing exactly the opposite of what the target allocation would suggest. When in doubt review your IPS. Setting goals, knowing our risk tolerance, having an Investment Policy Statement with a target allocation, true diversification, and rebalancing all work together to make us better investors. • Brandon C. Oakes is an investment adviser representative for PrimeVest Financial Services, a BankTrust affiliated investment officer.

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November/December 2011 Montgomery Business Journal

Graduating to a Larger Campus Success Unlimited Academy grows despite challenging economy

Susan Alred is principal and founder of Success Unlimited Academy.

by David Zaslawsky

(Editor’s note: This is one in an occasional series about how companies have dealt with difficult economic times.) When Success Unlimited Academy first opened its doors on Harrison Road there were about 40 students in the 2,500-square-foot facility. Now, there is a 15,000-square-foot facility at Executive Park and 189 students. The academy has been so successful that principal and founder Susan Alred hired five people this year. The staff has grown to 19 people – 14 of whom are teachers. A lot of that growth has come the past few years despite the Great Recession and a slow economic recovery. “I think we have a niche for children in Montgomery,” Alred said. “There is not really a place that will cater to their individualized needs. These are typical kids.”

Fouts Commercial Photography

She said that Success Unlimited Academy, a K-12 Christian school, fits in a category between a Churchill Academy and a Montgomery Academy.

“We are reaching capacity now even with our addition,” Alred said and discussions are under way about once again using the Harrison Road campus.

“We seem to reach a population of students that are non-traditional learners,” Alred said. “We have smaller classrooms and try to have a better environment for them to learn in and concentrate.”

Even during the difficult economic times, Alred has continued to advertise on TV, radio and print with a budget that has ranged from $800 a month to a maximum of $2,000 right before the school session begins. That advertising budget actually was increased from 2008 to 2011.

At one time, Success Unlimited Academy was utilizing three campuses, including a 4,000-square-foot facility at Faith Presbyterian Church on Bell Road. Although Success Unlimited had purchased the facility at Executive Park about six years ago, “we only had funds to renovate a portion of it,” Alred said. The school brought just the high school students to that campus and continued to use the Harrison Road facility for the remaining students. A $500,000 addition to the Executive Park facility was begun in 2010 and the new wing opened this year in January with four additional classrooms, teacher work room, music room and new technology. The addition enabled Success Unlimited Academy to bring all of its students from the Harrison Road campus to the Executive Park facility.

Montgomery Business Journal November/December 2011

Success Unlimited Academy is more than just a school and has a total of 250 to 300 students a year in its various programs. There is a full-service tutoring center, distance-education program and a night school “that serves kids in the Montgomery area that take courses at other schools and they can be dual-enrolled to make up credits,” Alred said. Now, Alred is eyeing the property across the street from the Executive Park location for a new gymnasium and a larger parking lot, but there is no current fundraising campaign. •

M O R E T H A N 6 0 S H O P S A N D R E STA U R A N TS , I N C L U D I N G : D I L L A R D ’ S | B U CK L E F R A N C E S C A ’ S C O L L E C T I O N S | A M E R I C A N E A G L E O U T F I T T E R S | TA L B OTS | C H I C O ’ S C A CH É | L O F T | G A P | G A M E STO P | W I L L I A M S - S O N O M A | A N N TAY L O R B A N A N A R E P U B L I C | V I C TO R I A ’ S S E C R E T | N E W YO R K & C O . | WA R E J E W E L E R S 3 2 °, A YO G U RT B A R | PA N E R A B R E A D | B O N E F I S H G R I L L | L A J O L L A R E STA U R A N T NOW OPEN: D S W S H O E S – next to Panera Bread | V E R S O N A A C C E S S O R I E S – next to DSW Shoes YA N K E E C A N D L E – next to Coldwater Creek T H E S H O P P E S AT E A STC H A S E A R E L O C AT E D AT E X I T 9 O F F I - 8 5 N AT TAY L O R R O A D T H E S H O P P E S AT E A STC H A S E . CO M | FA C E B O O K . C O M / E A STC H A S E

November/December 2011 Montgomery Business Journal

When retail growth has been non-existent in an area for 10 years or 20 years, an incentive program may very well be the answer. That’s what City of Montgomery officials believed when a retail incentives program was approved two years ago for the I-65 Corridor. Now the program will begin to show results with the planned construction of a Burger King on the Southern Bypass. The restaurant will be built on a newly created outparcel at the Capital Plaza shopping center.

Downes and Emerson talked about the I-65 Corridor incentive program as well as other programs when they attended the International Council of Shopping Centers’ convention in Las Vegas.

“If you look at the direct impact on a large city of a Burger King, it is quite candidly minimal,” said Montgomery Deputy Mayor Jeff Downes. “However, the biggest impact is the ability for the City of Montgomery and Montgomery County to show that they are in the game and willing to incentivize businesses to come to targeted areas that in some cases have not seen new development in 10 to 20 years.

“When we would sit down with an entity that was interested in Montgomery, we would lay out all the tools we have to incentivize them and the I-65 Corridor incentives was one of many tools.

“To be able to show potential developers and retailers that we’re in the game will hopefully create new and improved opportunities in these targeted areas. There should be no reason why there would not be opportunities for commercial development along this corridor. ”

The “continuing conversations” as Downes called them, run the gamut of retail businesses. He said there are ongoing talks for five projects that meet the basic requirements of creating a minimum of 20 jobs and a capital investment of at least $1 million. Each of the projects must be approved by both the City Council and the Montgomery County Commission.

The targeted region boasts more than 38,000 residents and has 40,000-plus vehicles pass through the incentive area daily along the Southern Bypass. Now, Downes and Chad Emerson, the city’s director of development, can turn to developers and retailers and have a concrete project to boast about as well as a high volume of both traffic and people. Downes said that Burger King owner Patrick Sidhu, who operates three other BK restaurants, hoped to start construction in October and finish the project by the end of the year. “To have the first such project made and actually see bricks and mortar coming out of the ground and seeing new job opportunities is a positive thing,” Downes said. “The greatest benefit to the city is the intangible of getting on the radar screen of other such development opportunities that can change the momentum, which has not been positive in recent years in these targeted areas – namely the Southern Bypass. This very first I-65 Corridor project basically shows the potential for incentivized development in an area that hasn’t seen development. 18

“As this becomes known throughout the development and retailer world, hopefully there will be another set of eyes that look toward the I-65 Corridor areas, Southern Bypass and possibly Fairview Avenue and look at potentially investing in those areas.”

Montgomery Business Journal November/December 2011

“In that process, we made some relationships and we’ve had some follow-up on the Southern Bypass by interested parties who are looking to revitalize empty storefronts or in a couple of cases look at opportunities to grow their particular market.”

The I-65 Corridor incentives program provides the developer a one-time sales tax reduction on the cost of construction materials and a10-year property tax abatement. Both of the incentives do not include the educational portion of the sales tax or property tax. The estimated cost of the new Burger King is $1.3 million with 50 percent of that being construction materials. That gives the owner/developer a one-time incentive of $32,500. The property tax abatement is an estimated $3,000 a year for 10 years. The total incentive package is $62,500. Meanwhile, the city will receive an estimated $54,250 in sales tax based on estimated annual gross sales of $1.55 million and the county will receive $38,750 in sales taxes. That is a combined $93,000 a year for 10 years or $930,000. “In essence, the total values of those put together significantly outweigh the cost to taxpayers,” Downes said. •

MORE BANG FOR THE BUCK by David Zaslawsky Business executives could learn a thing or two from the City of Montgomery when it comes to return on investment or more simply put: Getting the biggest bang for your buck. With the I-65 Corridor incentives program developers receive rebates for both sales tax and property taxes. When it comes to the agreement to build a Burger King on the Southern Bypass, where retail activity has been stagnant for one or two decades, the City of Montgomery and Montgomery County will receive a combined $93,000 for the first year. Now, depending on annual gross sales, that $93,000 could grow or decrease. Let’s say it stays constant for the length of the incentive agreement, which is 10 years. Do the math and the two entities receive a combined $930,000. That’s the benefit of the I-65 Corridor incentive program to the city and state, but at what cost. There is a one-time sales tax incentive on construction materials of $32,500 and over the course of the 10 years, there will be about a $30,000 rebate for property taxes – the non-educational portion. The total incentive package is worth about $62,500 in this case vs. a benefit of $930,000. Not a bad return on investment or definitely getting a lot of bang for just a few bucks. This is considered a project that meets the minimum requirements of a capital investment of at least $1 million and a creation of at least 20 jobs. What are the numbers for larger projects – a capital investment of at least $5 million and the creation of at least 40 jobs? The one-time incentive sales tax rebate on construction materials is $125,000 and the total savings on property taxes (noneducational portion) for 10 years is $100,000. The total incentive package is $225,000, but in this example the city would receive $350,000 in the first year from expected sales taxes and the county would receive another $250,000. That is a nice, round $600,000 the first year, but the agreement is for 10 years. That means the city and county make $6 million on their $225,000 investment. Let’s say a developer builds a major project in the targeted area – a $10 million project with a minimum creation of 50 jobs. The developer would receive a one-time sales tax incentive of $250,000 for the cost of construction materials. The developer would also receive an estimated $200,000 for their property tax incentive, making the total incentive package $450,000. That project would give the city $700,000 the first year in sales taxes and $500,000 to the county for a combined $1.2 million in year one. For that 10-year agreement, the city and county would bring in a combined $12 million in sales taxes on their $450,000 investment. Not bad. •

November/December 2011 Montgomery Business Journal

New Hornet stadium

Renderings are Courtesy of Alabama State University

Alabama State Universityâ&#x20AC;&#x2122;s 30,000-seat, on-campus football stadium is tentatively scheduled to open for the 2012 Turkey Day Classic homecoming game against Tuskegee University. The $50 million stadium will feature sky boxes and a state-of-the-art press box.

Montgomery Business Journal November/December 2011

Business Leaders’ Confidence Slips in Fourth Quarter by David Zaslawsky

Business leaders’ sentiment expressed in the Alabama Business Confidence Index has been an accurate barometer of the economy both in the state and nationally. That overall index for this year’s fourth quarter has slipped into contraction – 45.5 points and a decline of 5.9 points from the third quarter. It is a significant decline and marks the first time since last year’s fourth quarter that the index slipped below 50. It also is the lowest index since the third quarter in 2009. The business confidence index, which is conducted quarterly by the University of Alabama’s Center for Business and Economic Research, was less than 50.0 points in each industry sector. Health care services and manufacturing were the most pessimistic with confidence indexes at 41.4 points and 41.9 points, respectively. The retail trade was the most optimistic sector with an index of 49.5. Each of the state’s four-largest metropolitan areas had indexes less than 50 with Montgomery the highest at 47.2, followed by Mobile (46.0), Birmingham (45.1) and Huntsville (43.7). The lone individual component of the Alabama Business Confidence Index (ABCI) more than 50.0 was industry sales and that was barely in positive territory at 50.6 points. The following is a component-by-component breakdown of the ABCI: National economy This component had the lowest index at 37.8 – the only fourth-quarter component with less than 40 points. It declined 6.5 points from the previous quarter. More than half of the respondents in the survey expect the fourth quarter to be worse than the third quarter while about 13 percent expect a better quarter. About one-third were forecasting no change. Alabama economy The business leaders’ outlook for the state economy was 45.0 points, the second lowest component. This component showed a 7.4-point decrease

ABCI quarterly breakdown 2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Source: University of Alabama’s Center for Business and Economic Research

from the third quarter and the largest decline of the six components. Nearly twice as many respondents (35.4 percent) expect a worse quarter compared with those forecasting a better quarter (19.1 percent). Forty-five percent expect the fourth quarter will be similar to the previous quarter. Industry sales – This component had a decline of 5.5 points from the previous quarter, but one-third of the survey participants are forecasting an improved quarter while about 30 percent anticipate a down quarter. Almost 38 percent expect the fourth quarter to remain the same as the third quarter. The transportation, information, utilities, professional, scientific and technical services sectors are expecting modest sales declines while retail and wholesale trade sectors are anticipating moderate sales increases. The finance, insurance and real estate sectors are forecasting slight sales increases. Industry profits The component fell 5.3 points from the third quarter to 47.3 points, the second-highest index. More than one-third of the respondents (38.5 percent) expect no change in the quarter compared with almost 35 percent anticipating a decline in profits and about 27 percent expecting a rise in profits. The only sectors expecting an increase in profits are finance, insurance and real estate. The retail and wholesale trades anticipate profits will be flat while the construction sector and other service sectors expect a modest decline. A more moderate

decline is forecast in the transportation, information and utilities sectors. The manufacturing and health care sectors are the most pessimistic. Industry hiring The component has an index of 45.9 points after falling 6.2 points from the previous quarter. About twice as many respondents (57 percent to 28 percent) are expecting the quarter will remain the same vs. declining. About 16 percent are forecasting an increase in hiring. The lone sector expecting an increase in hiring is the retail sector because of the holiday shopping season. The health care, transportation, information and utilities sectors could see the most job losses. Industry capital expenditures The component declined the least of all six, losing 4.7 points to a fourth-quarter index of 46.4. Half of the survey participants expect no change in spending compared with 30 percent forecasting a decline and 20 percent expecting an increase. The retail sector is expecting an increase in fourth-quarter spending while the finance, insurance and real estate sectors are forecasting spending to be flat. The manufacturing sector anticipates a modest decrease in spending, but the health care, wholesale trade, professional, scientific and technical services sectors are expecting a more moderate decrease in spending.•

November/December 2011 Montgomery Business Journal

Member Profile

Terry Barber is the general manager of Bluewater Brooadcasting.

Local folks Helping Local Business Bluewater Broadcasting tunes into personalities of its people by Jennifer Kornegay

photo by Robert Fouts

When he was 14 years old, Terry Barber started his career in radio, working as a disc jockey slinging vinyl in his hometown of Newton, Mississippi.

Montgomery Business Journal November/December 2011

According to Barber, it certainly is. “Ninety percent of all people listen to radio at least once per week. The unfortunate weather events we have had recently show one reason how and why radio still matters,” he said. “We are here through it all, and we may be the last source of information you can get. When power goes off, you lose your television and the Internet.” That was 1979. More than 30 years later, Barber is still in radio, but now, he’s the general manager and part owner of Bluewater Broadcasting, Montgomery’s only locally owned group of radio stations that was founded in 2004. Much has changed in the last three decades, according to Barber. “From a technical aspect, radio has changed so much and really advanced,” he said. “We used to play vinyl records, then CDs; now we all use digital music files.” Other changes have allowed Bluewater to meet the needs of the River Region’s diverse population. “It used to be that you could only own one radio station per market, but that has changed. We have five stations, and it can be challenging with five different audiences to please, but it is really good for our advertising clients because we do have that diversity of listeners.” Bluewater’s stations include WACV – 104.9 The Gump; WBAM – Bama Country 98.9; WJWZ – 97.9 Jamz; WMRK – NewsTalk 107.9; and WQKS – Q96.1. Barber pointed to the one thing that is, and will always be, the same in the radio business: the people. “It is people that make a difference,” he said. “It is the recipe of how you put the songs together and what you do in between. One thing that we have really been able to capture on all our stations is the personality of our people.” And those people are local, something that Barber believes sets Bluewater apart from the large radio conglomerates. “Our slogan is local folks, helping local business,” he said.

Barber encourages everyone to check their mobile phone to make sure it has a real FM receiver and “not just a radio station’s app, because that works through the Internet.” It is more than just being the last line of defense in an emergency situation though. Barber again stressed the value of local people connecting with their community. “We call it broadcasting, but really radio is one-on-one. When Greg Budell is talking, he’s talking to you,” he said. Today, Bluewater isn’t fighting social media and the web; it is using both to its advantage. “We put a lot of effort into our websites and social media,” he said. “We’ve seen an increase in the last few years in our stations streaming on the Internet; many use this to listen in their office at their desk. We once spent a lot of time answering a request line. Now that request line is facebook, and we encourage all of our personalities to interact with their listeners on facebook.” This strategy and others seem to be working in Bluewater’s favor. In the seven years since it started, the company has experienced phenomenal growth. “We’ve added people, added stations, including Montgomery’s first FM talk station, and we’ve probably doubled our revenue since 2004,” Barber said. “We’re planning to add two new stations in June.” When asked about the secret to the company’s success, Barber praised the company’s people yet again. “The difference between your iPod and a radio station is the people, the flavor of the broadcast, the witty comments, the way they add their personal experiences,” he said.

“With a few exceptions, all of our programming originates here, with people you know. Folks like Bubba on our country station and Susan Woody, they live here; this is their home. All of the decisions are made here with people of the River Region in mind; we don’t have to ask Atlanta or San Antonio, and that gives us an advantage.”

Bluewater Broadcasting

The on-air personalities for each station are involved in the community, as is Barber, solidifying Bluewater’s local focus. One example is Barber’s “Something to Think About” commentary spots that run several times a week on all the company’s stations. “I started doing these editorials about a year and a half ago,” he said. “I want to get people talking about issues facing this community, and I don’t really hold back. I started doing it because I noticed that so many times people are not talking about the real issues. Everybody is too busy being politically correct, so I wanted to put something real out there.”

Best Radio Commercial (in its market classification) from the Alabama Broadcasting Association.

He admitted that some of the thoughts he offers up for discussion may step on a few toes. “I think if it moves people to address something though, then that is a good thing,” he said.

Date founded

2004 Recent awards/honors

The Bama Country Morning Show was named Best Morning Show in Alabama (in its market classification) in 2010. Number of employees

While Barber is creating buzz, and Bluewater stations are pumping out local content, some may wonder in a world increasingly overrun with social media and other, more “cutting edge” ways to mass communicate if radio is still relevant.

November/December 2011 Montgomery Business Journal

Montgomery

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photos b y Robert Fouts

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its $108 million manufacturing facility is located at Interstate Industrial Park.

During negotiations with Hyundai Heavy Industries about locating its first North American manufacturing facility in Montgomery, a Montgomery Area Chamber of Commerce official set up a bowling tournament. “It was a week-long negotiation and having done that many times, those get very intense,” said Ellen McNair, the Chamber’s senior vice president, Corporate Development. “It can be very stressful.” The bowling tournament, which pitted teams of HHI members against Montgomery political and business leaders, was an attempt to alleviate some of that stress. The tournament was held at Korean-owned Ace Bowling and there was a trophy. The results are a top secret. After the tournament, everybody ate dinner at the nearby Korean restaurant Arirang. Seated at the table were then-Alabama Development Office Director Neal Wade, Montgomery Mayor Todd Strange, Montgomery County Commission Chairman Elton N. Dean, Montgomery City Council President Charles Jinright, Montgomery Area Chamber of Commerce President Randy George as well as other economic developers, including an Alabama Power executive. McNair recalled that Wade said, “ ‘There are very few communities that you would have the mayor, the chairman of the County Commission and the head of the City Council (together for bowling and dinner). It is very impressive that you could bring these leaders together and they are such good friends. Everybody gets along.’ ” That night was not lost on HHI’s management, which built a huge facility to manufacture power transformers. The local company is called Hyundai Power Transformers USA (HYPO) and

Hyundai Power Transformers USA President and CEO Gyou Chul Lee said that “everyone here in Alabama is so willing to help and pitch in. Mayor Strange, former Gov. (Bob) Riley, present Gov. (Robert) Bentley, the Montgomery Chamber of Commerce and local officials have all made promises to us about our company and the things they would do to help us if and when we decided to settle in Alabama. “They continue to keep their promises and to welcome our company. Commitment to our success as a company means so much to us. Being excited that we are here and providing support is also of a high value to us.” Hollie Pegg, a senior project manager for Alabama Development Office (ADO), said that Korean business executives “are impressed” with Montgomery’s leadership and that leadership team has been around for a long time. Before becoming mayor of Montgomery, Strange was the ADO director when Hyundai Motor Co. was being recruited. After leaving ADO he was chairman of the Montgomery County Commission. Dean was vice chairman of the County Commission and has been chairman since Strange became mayor. “The leadership works very well together,” McNair said. “Those (partnerships) transcend every single project. There is a trust factor with all the economic development players. There’s a competency. Montgomery responds and reacts quickly and if you don’t you get left behind. We can get answers quickly.” The political leadership ties are just one small factor that helps Montgomery in recruiting Korean companies. After Hyundai Motor Manufacturing Alabama began constructing its facility, the company’s suppliers announced moves to Montgomery, the River Region and surrounding areas. Continued on page 26

Continued from page 25

Now non-automotive companies based in Korea are taking a serious look at Montgomery in addition to HYPO. “Just last week we had a major Korean company that said their chairman called them out of the blue and said, ‘You go make a trip to Montgomery and see what’s going on there and see if there are sites and opportunities for us,’ ” McNair said at a monthly political leaders breakfast. That company was not automotive-related.

‘Montgomery is like another hometown’

One of the many reasons that HYPO selected Montgomery was the success of Korean companies already here. Korea is a small country and the business executives know each other.

by David Zaslawsky The City of Montgomery has several advantages when it recruits Korean companies to locate here. One of those advantages is a growing and vibrant Korean community. There are more than 4,000 Koreans living in the River Region and that number is growing, according to Young Gray, a former economic developer with the Prattville Area Chamber of Commerce and a current columnist for a Korean-language newspaper. She said Koreans living in New Jersey, California and Georgia are moving here to open up businesses. Gray said there are an estimated 10,000 Koreans living in the state. Gray, who was born in Seoul, but has lived 36 years in the United States and 17 of those years in Montgomery, said there are 100-plus Korean-owned businesses in the area, ranging from a certified public accounting firm to churches, hotel, bowling alley, restaurants, markets, clothing store, beauty supply stores, auto repair, shoe repair, construction company, cell phone store, hair salons, gas stations, Taekwondo, attorneys, physicians and optometrist. There are a dozen Korean-owned restaurants, according to Gray, and seven restaurants that serve Korean food. She said there are also two small Korean grocery stores and another store owned by a Korean who stocks some Korean food items.

Fouts Commercial Photography

Young Gray is a former economic developer with the Prattville Area Chamber of Commerce and a current columnist for a Korean-language newspaper.

She said the organization helps Koreans “not only with the language, but also how to do business here. If we don’t have a strong Korean-language speaking community here to provide information it would be difficult for the newcomers.” Churches play an integral part in the Korean community, Gray said. She said churches are not only places of worship, “but it’s a central, social network place.” After services, the Korean families “always share a meal together,” Gray said. Having a Korean community makes life much easier on the spouses, Gray said. “The wives get together with people from the church of where the husband works and there is a lot of networking. They play golf, too.” Gray said she receives emails from some of the people who came to Montgomery and have since returned to Korea. She said they “fondly remember Montgomery. Montgomery is like another hometown.” •

“There are a lot of newcomers and they don’t understand the customs and procedures of the way we work here,” said Gray, a board member of the Korean-American Association of Greater Montgomery that has 3,500-plus members statewide. 26

Montgomery Business Journal November/December 2011

“The Korean companies that are established in Alabama gave us some useful knowledge about the Montgomery area,” said Lee. “We used contacts to judge the degree of responsiveness from the state, county and city to our needs in establishing our operation. “Our contacts in the Montgomery area spoke favorably of the response that they received in the past. We looked for a location that is Korean friendly and would support our objectives.” McNair said that there is a “lot of interaction socially between company officials” and they share information about their experiences. Those experiences are all about Korean companies coming to Montgomery and being successful. “We knew that several Korean companies had made successful starts here,” said Lee. “We also know that other foreign companies called Alabama home. We heard (from other Korean companies in the River Region) that there was a good work force here that wanted to work and that the infrastructure could support our workload and that the

people of Montgomery were supportive of different cultures. “We also knew that Alabama offered a good incentive plan and while that was important on our list of things we wanted, there were many other items in the deciding factor.” Because of the Korean companies operating here, the Korean media have been writing about Montgomery for nearly a decade. “I can definitely tell you that people in companies there know about Montgomery,” said McNair, who has made between 10 and 20 trips to Korea. “They know who Montgomery is.” Pegg said that Korean companies know that Alabama has a loyal workforce and a workforce “who work very, very hard and they are grateful for jobs. Our workers have a tradition of not changing companies like they do in a lot of places.” There is land available here with infrastructure and Montgomery features two interstates – I-65 and I-85. The water and sewer boards have “done a great job of extending water and sewer to sites and Alabama Power has been an important player as well,” Pegg said. Another factor in attracting Korean companies is what McNair called “the Korean infrastructure here.” That Korean infrastructure comprises everything from churches, restaurants, markets, Koreanowned businesses and a Saturday Korean School, which was started in 2004 at Halcyon Elementary School. The school is taught by Koreans and about 250 students study Korean language, culture and history from 8 a.m. to noon to make sure they are prepared when they return to Korea.

“I’ve had many Korean nationals tell me how comfortable they feel bringing their families here,” Pegg said. “A lot of them are coming to the U.S. for the very Holly Pegg is a senior project manager for the first time and they’re Alabama Development bringing their families Office (ADO). where they know they are going to have a support system and a comfortable place to put their children in school.”

Korean companies in Montgomery/region

Once the Korean companies are here, the political leadership and business community continue to address all issues and offer support. “I think the important thing for Alabama and Montgomery is that we have proven we will do what we say we’re going to do,” Pegg said. “If we make a commitment or promise – they (Korean companies) feel confident in that. It’s a trust issue.”

Capital investment

Lee said, “It is evident to us that Montgomery respects our company and our business objectives. One of the reasons that HHI/ HYPO and the City of Montgomery blend so well together is because we believe that the city and the city’s officials embody our Hyundai spirit… creative wisdom, positive thinking and an unwavering drive.” •

Hyundai Motor Manufacturing Alabama Capital investment

$1.85 billion Employees

2,700

Hyundai suppliers in Montgomery County Number of companies

$376 million Employees

1,780

Hyundai suppliers in Montgomery Metropolitan Area Number of companies Capital investment

$670 million Employees

2,325

Note: The numbers are estimates Source: Montgomery Area Chamber of Commerce

Lee said that having an established Korean community here “helped us to make the final decision to locate here. It was not the final deciding factor, but we knew that it would be nice for our Korean team members to have others of their country for social opportunities.”

Gyou Chul Lee (far right), president and CEO of Hyundai Power Transformers USA, speaks with Gregg Williams safety manager; and Meghan Branum, public relations specialist for Hyundai Power Transformers USA; at the company’s construction site in Montgomery.

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November/December 2011 Montgomery Business Journal

a helping hand by David Zaslawsky A Korean executive with Hyundai Power Transformers USA had been in the region for several months and bought a new car. The new car had temporary tags. Then the executive had to go back to Korea. His wife realized that the car tags were expiring. Help was already there. Jeanne Charbonneau is the Korean Family Support coordinator, working for the City of Montgomery and Montgomery County. She had already helped the wife get the required immunization records so the couple’s children could attend school. She helped the spouse meet with counselors to set up schedules and enroll the children in school. “I drove with them through the carpool line and showed them how to do these kinds of things because it is very different from where they were,” Charbonneau said of Korean citizens trying to adjust to life in the River Region. Back to the car tags. Replacing the temporary tag is not usually that complicated, but in this case – with a spouse 10,000 miles away and a wife with limited English skills – it was no simple task. It became much more

complicated when Charbonneau reviewed the invoice paperwork and the insurance papers. Everything was just in the husband’s name. The wife now needed a limited power of attorney and it had to be notarized. Charbonneau made a trip to the probate office and got the required forms. She went to Hyundai Power Transformers USA, which is building a massive facility that was expected to have a grand opening in November.

“The first step is getting them comfortable with me and assuring them that I really am a resource for them and they can call me anytime they want.”

Charbonneau, a retired Army lieutenant colonel who has moved her family around the world, explained the situation to one of the company’s bilingual administrators. The husband was contacted and mailed the forms back.

That’s important because the spouses do not call their husbands at work “even if they need something desperately,” Charbonneau said. The Korean executives are working 15- to 18-hour days to meet ambitious design, build and construction timelines.

“I picked up the wife and went to the probate office. I took a screw driver with me. Outside the probate office, we put the new license plate on and I took her iPhone and took a picture of her so she could send it to her husband and say, ‘We did it.’ ”

“There are not enough hours in the day for them (Korean executives) to do what’s required on the job and take care of their family adequately,” Charbonneau said. “They can’t take time off work and go sit at the house and wait for the Knology or Charter guy to come and hook the Internet and cable up.

Mission accomplished. That’s just one small mission, but the type of support that Charbonneau provides to the Korean families coming to the River Region for assignments lasting two to three years. Some Korean executives have assignments stretching three to five years. She assists the Korean families in every facet of their lives: Helping enroll children in school, which even includes attending conferences, obtaining bus schedules. Finding a place to live. Setting up utilities. Helping find doctors, dentists and explaining about specialists. Introducing the spouses to one another. Organizing group trips. A reporter with the Chosun Daily in Korea recently wrote that Charbonneau found a music tutor for a Korean family member who wanted to learn to play the harp. Korean Family Support coordinator Jeanne Charbonneau helps newcomers adjust to life in the River Region.

No task is too small or too large for Charbonneau to tackle. “I literally do anything that they need,” said Charbonneau, who expects to assist 50 to 60 Korean families coming here for Hyundai Power Transformers USA.

Montgomery Business Journal November/December 2011 Fouts Commercial Photography

“The husbands are very, very grateful. They are thankful and appreciate that there is somebody that can hold the hands of their spouses – that they have somebody to call.” Charbonneau first started her role when Hyundai Motor Co. decided to build its first North American manufacturing facility in Montgomery. “Her passion for this job is just amazing,” said Ellen McNair, senior vice president of Corporate Development for the Montgomery Area Chamber of Commerce. “Can you imagine if you had to pick up your family and move to (somewhere) in Korea? You can imagine how scary that has to be for these families. She can empathize with them.” About 40 percent of Charbonneau’s time is spent dealing with education matters, making sure that the children are enrolled in the proper grade and taking appropriate classes. But there is another issue that has come up – fender-benders. “I get called out for car accidents,” Charbonneau said. “They (spouses) don’t want to bother their husbands at work.” •

After 25 years as a community leader and respected banker, Gene joins the River Regionâ&#x20AC;&#x2122;s community bank.

Crane

leading

Way to go Gene! Kenneth Givens, EVP & CFO | Karen Pugh, EVP & COO | Gene Crane, EVP & Business Banking Manager Jimmy Stubbs, President & CEO | Joel Winslett, EVP & CCO | Polly Hardegree, EVP & Wealth Management/Retail G ENE CRA NE IS NO W A T RIV E R BA NK.

Yes, Gene has some impressive credentials. Now, he adds

another impressive credential, Executive Vice President and Business Banking Manager at River Bank & Trust.

As part of the leadership team at River Bank, Gene will

help strengthen our position as the areaâ&#x20AC;&#x2122;s leading community

bank. With expert advice and banking products designed to help our region grow.

S E R V I C E

U N S

D E E P

RI V E RBA NKA NDTRUST.CO M

M O N T G O M E R Y | P R AT T V I L L E | W E T U M P K A

334.396.6565

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Member FDIC Equal Housing Lender November/December 2011 Montgomery Business Journal

Success Starts Here Bus Tour highlights the region’s success stories by David Zaslawsky

While new industry announcements steal all the headlines, a region’s existing industries quietly go about their business. And business is very good for some of Montgomery’s existing businesses including MOBIS Alabama, a tier one supplier to Hyundai Motor Manufacturing Alabama (HMMA); Allstate Beverage Co.; J&P Khamken Industries; Jay R. Smith Manufacturing Co.; Thermalex; Shinsung Petrochemical and KyungshinLear, another tier one Hyundai supplier. Those seven existing industries have added a combined 194 jobs with a capital investment of $56.8 million. The seven have a combined work force of nearly 1,600 employees with the bulk of them at MOBIS, which has 1,017 employees and is adding 129 as part of a new $39 million expansion. It is the fifth expansion for MOBIS, the largest of the Hyundai suppliers. “The backbone of job creation is the existing industries,” Montgomery Mayor Todd Strange told CBS 8 News. Business leaders and political leaders went on a bus tour of four of the existing industries to highlight the successes of those companies in what is called the “Success Starts Here Bus Tour.”

Fouts Commercial Photography

During the tour, it was announced that KyungshinLear in Montgomery is the U.S. headquarters for the company, which is a joint venture between Kyungshin and Lear Corp. The new company will have 64 employees. Allstate Beverage Co., which is the 20thlargest beer distributor in the country, is adding 20 employees to a staff of 120 as part of a $4 million expansion. J&P Khamken Industries provides a wide range of services including manufacturing products for the defense industry, munitions, aircraft components and parts, machine products and assemblies and dockside ship repairs. The company, which was founded by brothers Pat and Jack Khamken, is adding 25 jobs and will have a total of 60 employees.

The company announced a capital investment of $830,000. The firm was named the Small Business Subcontractor of the Year by the U.S. Small Business Administration earlier this year. Jay R. Smith manufactures commercial plumbing products and is adding 20 employees to a work force of 280. The company also is making a capital investment of $1.8 million. Thermalex, a wholly owned subsidiary of Mitsubishi Aluminum, manufactures precision products for automotive, commercial, residential, air conditioning and refrigeration customers. The company is expanding its work force from 130 to 150 as part of a $7.4 million capital investment. Shinsung Petrochemical is a supplier to both HMMA and the Kia manufacturing facility in West Point, Ga. The company is hiring 45 workers and is making a $3.8 million capital investment. “This (bus tour) is a way to say thank you to seven of the industries that are creating (about 200 jobs) and about a $58 million total expansion,” Strange told CBS 8 News.•

Montgomery Business Journal November/December 2011

What’s in Store for Downtown Montgomery? City unveils retail incubation project by David Zaslawsky

Montgomery Mayor Todd Strange said that downtown lacks two things: a grocery store and retail. The city is taking steps to change Chad Emerson that, albeit baby steps. First, the city is offering an incentive to build a grocery store within a prescribed area of downtown Montgomery in its Montgomery Downtown Retail Pioneer Program. Other requirements are the store must receive 75 percent of its revenue from grocery items and must have a minimum of 2,000 square feet. The city will reimburse the grocery store owner a sales tax credit of 1.75 percent after one year. That rebate may be used on job creation and other qualified expenses, according to Chad Emerson, director of development for the City of Montgomery. “The incentive is to reinvest in the business,” he said. The city is also unveiling what Strange called “a new concept for retail.” That concept is a retail incubation program. “We are going to do a project that will incubate retail in downtown on a small scale,” Emerson said. The small scale he was referring to is a single, temporary and movable structure with two 576-square-foot units. The retail businesses occupying the units will be non-food and beverage, according to Emerson. He said the businesses could be boutique shops, women’s clothing, shoes, athletic apparel, art and other types of galleries.

“They will be designed to provide retail options for guests and residents downtown,” he said. “We’re not looking for tenants – we are looking for tenants who can succeed and grow. We don’t want a lot of turnover downtown.”

The retail tenants will be limited to a twoyear stay, which encourages them to find a larger location. The concept is providing an entrepreneur with a low-cost opportunity to start a business. The monthly rent will be $950.

The retail business owners will be required to attend the Montgomery Area Chamber of Commerce’s 12-week Entrepreneurial University, which is conducted at the Chamber’s Small Business Resource Center. The owners are also required to talk with counselors from Service Corps of Resource Executives and join the Montgomery Area Chamber.

“We have interest from several retailers,” Emerson said. “Right now, I think it’s going to be a question of the best fit. You can test the water downtown and see if there is demand and if there is, find a permanent location (later).

The location of the structure is still being finalized, but one of the potential sites is adjacent to Corner Park in front of the Embassy Suites Hotel in the city-owned parking lot. “It obviously is a great location in front of the Embassy and across the street from the Renaissance,” Emerson said, referring to the Renaissance Montgomery Hotel & Spa at the Convention Center. “The (site) is right in the entertainment district core and we own the property. If we decide to expand the park, we can pick these buildings up and relocate them to another area.” Emerson said city officials hope to have the two units operational by March. The structure is being built by Gary Blackman, who has built homes at Lanier Place in West Montgomery and at The Waters in Pike Road. He is currently renovating City Drug store on Dexter Avenue and is building a loft unit above it where he will live.

“This is an opportunity to let them see if they have success and we think that working with the Small Business Resource Center and their skill set and their programs… that we set them (retailers) up for success.” The program may expand to additional structures and units depending on demand, Emerson said. “We have lots of interest and if they are successful and provide a great program for business development we could try to approve more internally. “This is a business development program rather than a real estate project. We are trying to help develop retail businesses in our city.” Michigan-based Gibbs Planning Group, urban economic and planning consultants, is conducting a retail demand study for downtown Montgomery. The study will be a recruiting tool for retail, Emerson said. “The study will show what the area can support,” he said. “We don’t want to recruit failures.” •

November/December 2011 Montgomery Business Journal

Member News

Business Buzz MISS ALABAMA USA, MISS ALABAMA TEEN USA PAGEANTS COMING TO MONTGOMERY MONTGOMERY – The City of Montgomery has been selected as the site for next year’s Miss Alabama USA and Miss Alabama Teen USA pageants. Pete Knight

Bill Renfroe

RENASANT BANK OPENS OFFICE WITH VETERAN MANAGEMENT TEAM MONTGOMERY - Renasant Bank announced its entry into the Montgomery market with four local bankers. Pete Knight was named the Montgomery city president and he brings with him 30 years of banking experience. Bill Renfroe joins the commercial lending team as a senior vice president and relationship

Gerald Boone

Jennifer Wilsford

manager with 14 years of banking experience. Gerald Boone joins Renasant Bank as a vice president and business development officer. He has 30 plus years of banking experience. Jennifer Wilsford is a certified treasury professional and joins the team as vice president of cash management services in the Montgomery region. She has 12 years of banking experience. The company is located in downtown Montgomery at 8 Commerce St.

Montgomery Business Journal November/December 2011

This marks the first time in the pageant’s history that Montgomery will host the events, which are scheduled for Jan. 27-28 at the Montgomery Performing Arts Centre. “We are very excited that RPM Productions has chosen Montgomery to host the 2012 Miss Alabama USA and Miss Alabama Teen USA pageants,” said Dawn Hathcock, vice president for the Montgomery Area Chamber of Commerce’s Convention & Visitor Bureau. “It seems to be a natural fit to bring these prestigious events to Alabama’s Capital City and we are honored to host them and showcase Montgomery and the River Region.” The pageants are the Official State Preliminaries to the Miss USA and Miss Teen USA Pageants, which are part of the Miss Universe Organization. “Alabama’s Capital City of Montgomery is the perfect

home for the Miss Alabama USA and Miss Alabama Teen USA pageants,” said Paula M. Miles, president of RPM Productions Inc., which is producing the pageants. “The contestants, their friends and families will be treated to a first-class event and will be able to experience the revitalization of the Riverfront district in downtown Montgomery.” The pageants will feature contestants between the ages of 14-26, who will compete in interview, swimsuit and evening gown competitions. They will be competing for thousands of dollars in scholarships and prizes as well as the ability to travel the state promoting the pageants and its charitable alliances. The two winners will represent the state at the Miss USA and Miss Teen USA pageants. Every contestant competing in the pageants has the opportunity to receive a full scholarship to Troy University. “We are so thrilled to partner with Troy University and are excited to extend this amazing opportunity to all of the young women competing for Miss Alabama USA and Miss Alabama Teen USA,” Miles said.

The fully-operational Max branch is open two mornings per week to serve the students, faculty and staff of Lanier High School. The branch is staffed by Lanier students and managed by Max professionals.

Lanier High School students and representatives from Max Credit Union, the Montgomery Area Chamber of Commerce, Montgomery Public Schools and the City of Montgomery help Max President and CEO Greg McClellan (center, holding scissors) cut the ribbon for the grand opening of the new Max student financial center inside Lanier High School.

MAX CREDIT UNION BRANCH OPENS AT SIDNEY LANIER HIGH SCHOOL MONTGOMERY - Max Credit Union celebrated the grand opening of the River Region’s first student financial center inside Sidney Lanier High School.

The financial center is part of a hands-on learning environment in the Finance and Business Career Academy at Lanier. The branch gives students realworld money management experience, helping them develop life skills to put them on track for career options after high school. In addition to earning school credit for working at the branch, students also have the opportunity to participate in the creation of marketing materials for financial products and services offered there.

Max partners in the financial center are Montgomery Public Schools and the Montgomery Area Chamber of Commerce Career Academies Task Force. “This is an investment in our kids, our community and our economy,” said Max President and CEO Greg McClellan. “We believe this is an opportunity for the students to acquire the real knowledge, skills and self-confidence necessary to reach and exceed whatever goals they set for their future.” Montgomery Public Schools Superintendent Barbara Thompson praised Max Credit Union’s involvement at Lanier High School. “This is an amazing opportunity for our students, (and) Max is an outstanding community partner,” Thompson said. “Opening

this branch in Lanier will give the students in our Finance Career Academy the chance to see firsthand the practical application of some of what they are learning in the classroom. “We are so grateful to Max for seeing the potential for students, and investing the time and resources into making this a reality.” MOWERY NAMED TO MAGAZINE’S PRESTIGOUS RISING STARS LIST WASHINGTON, D.C. – David L. Mowery, founder and president of Mowery Consulting Group, LLC, has been named to Campaigns & Elections magazine’s 2011 Rising Stars. Mowery, 33, has helped Democrats, Republicans and independents win elections, (Continued on page 34)

November/December 2011 Montgomery Business Journal

BUSINESS BUZZ (CONTINUED FROM PAGE 33) including managing Bobby Bright’s victorious campaign for the U.S. House of Representatives in 2008. Among the Republicans he has worked for are state Sen. Dick Brewbaker and state Rep. Donnie Chesteen. Mowery also worked for state Sen. Harri Anne Smith, who was dropped from the Republican primary ballot. He helped her win reelection as an independent. Only 40 political operatives – 15 Republicans, 15 Democrats and 10 nonpartisan or international operatives – are named to the Rising Stars list. Those operatives must be no older than 35 and have an established track record of achievement in political consulting or advocacy. Rising Stars were first recognized in 1988 and past honorees include David Axelrod, Donna Brazile, James Carville, Alex Castellanos, Rahm Emanuel, Ben Ginsberg, Ed Goeas, Mike Murphy, Bill McInturff and George Stephanopoulos. YANKEE CANDLE OPENS IN THE SHOPPES AT EASTCHASE MONTGOMERY – Yankee Candle opened its first dedicated store in the River Region at The Shoppes at EastChase. The nationally-known brand is located between Coldwater Creek and Williams-Sonoma. The store is open 10 a.m. to 9 p.m. Monday through Saturday and 1 p.m. to 6 p.m. Sunday. Yankee Candle, the country’s best-selling candle brand, began more than 40 years ago and now offers more than 150 fragrances as well as home fragrance scents and candle accessories.

George Thompson

THOMPSON INSURANCE RETAINS BEST PRACTICES STATUS MONTGOMERY – Thompson Insurance Inc. has retained its status as part of an elite group of independent insurance agencies participating in the Independent Insurance Agents & Brokers of America (IIABA) “Best Practices” Study Group. Each year since 1993, IIABA and Reagan Consulting, an Atlantabased management consulting firm, join forces to study the country’s leading agencies in six revenue categories. The agencies comprising the study groups are selected every third year through a comprehensive nomination and qualifying process and awarded a “Best Practices Agency” designation. The selected “Best Practices” agencies retain their status during the three-year cycle by submitting extensive financial and operational data for review each year. “We are very proud of the fact that Thompson Insurance has been selected as a Best Practice Agency for 17 consecutive years,” agency President George Thompson said. “This speaks highly of our staff as well as the fine insurance companies we are privileged to represent.” Last year, which marked the start of a new three-year study cycle, more than 1,200 independent agencies throughout the U.S. were nominated to take part in

Montgomery Business Journal November/December 2011

the annual study, but only 224 agencies qualified for the honor. To be chosen, the agency had to be among the 35-40 topperforming agencies in one of six revenue categories.

an incentives package to HHI to locate its first North American manufacturing facility in Montgomery. The local company is called Hyundai Power Transformers USA.

Thompson Insurance was founded in 1964 and offers insurance products from a number of different companies including Amerisure, Auto Owners, Chubb, Cincinnati, CNA, EMC, FCCI, General Casualty, Great American, Hartford, Penn National, Philadelphia, Progressive, Travelers, Union Standard and Zurich.

John Veres

AUM ranks among Southeast’s best universities MONTGOMERY – Auburn University at Montgomery has been ranked among the region’s best universities by U.S. News & World Report. Montgomery Area Chamber of Commerce President Randy George is flanked by (left) Timothy Solomon, chair, International Economic Development Council (IEDC) Awards Advisory Committee and executive director of Regional Development Alliance, Inc. in Idaho Falls; and Dennis Coleman, chairman of the board, IEDC and president and CEO of St. Louis County Economic Council in St. Louis.

CHAMBER RECEIVES AWARD FOR HYUNDAI HEAVY INDUSTRIES PROJECT CHARLOTTE, N.C. – The Montgomery Area Chamber of Commerce received an honorable mention for the Hyundai Heavy Industries (HHI) project. The Chamber received the award at the International Economic Development Council’s annual conference for the “regionalism and cross border collaboration” on the HHI project. Prattville, Greenville and Elmore County along with the City of Montgomery and Montgomery County all contributed to

The exclusive rankings of more than 1,400 American schools hit newsstands in September and Auburn Montgomery is the only university in the River Region to rank as a top-tier Southern university. “We are obviously very pleased to be counted among the region’s best universities,” said AUM Chancellor John G. Veres III. “The rankings reflect the excellent work of our faculty and staff. They are changing lives for the better, and I am proud of the great work they do.” Auburn Montgomery ranked 89th in the South. Over the past two decades, the U.S. News college rankings, which group schools based on categories created by the Carnegie Foundation for the Advancement of Teaching, has grown to be the most (Continued on page 36)

November/December 2011 Montgomery Business Journal

BUSINESS BUZZ (CONTINUED FROM PAGE 34) comprehensive research tool for students and parents considering higher education opportunities. Accredited by the Southern Association of Colleges and Schools, AUM offers bachelor’s and master’s degree programs in more than 90 areas, as well as doctoral programs offered jointly with Auburn University.

Best Lawyers compiles its lists of outstanding attorneys by conducting exhaustive peer-review surveys in which thousands respond. The 18th edition of the Best Lawyers in America was the result of more than 3.9 million detailed evaluations of lawyers by other lawyers. Those being honored as “Lawyers of the Year” have received top ratings in surveys for their abilities, professionalism and integrity.

Rhon Jones

J. Greg Allen

BEASLEY ALLEN ATTORNEYS NAMED TO 2012 EDITION OF BEST LAWYERS MONTGOMERY – Beasley, Allen, Crow, Methvin, Portis & Miles P.C. shareholder J. Greg Allen has been named the “Montgomery Best Lawyers Product Liability Litigation – Plantiffs Lawyer of the Year” for 2012. Shareholder Rhon E. Jones was named “Montgomery Best Lawyers Litigation – Environmental Lawyer of the Year” for 2012 by Best Lawyers, the oldest and most respected peer-review publication in the legal profession.

The law firm had 17 attorneys named to the 2012 edition of Best Lawyers in America. The 17 are – in addition to Allen and Jones – the firm’s founding shareholder Jere L. Beasley, as well as shareholders Thomas J. Methvin, J. Cole Portis, W. Daniel “Dee” Miles III, Michael J. Crow, Andy D. Birchfield Jr., Roman A. Shaul, P. Leigh O’Dell, Julia Anne Beasley, LaBarron N. Boone, R. Graham Esdale Jr., David B. Byrne, W. Roger Smith, III, C. Gibson Vance and Of Counsel attorney William E. Hopkins Jr. GOODWYN, MILLS AND CAWOOD HELPS ANDALUSIA REDUCE ENERGY COSTS ANDALUSIA – Goodwyn, Mills and Cawood Inc. was closely involved with the preliminary testing of aging pumps and assisted with the City of Andalusia’s $250,000 grant application. The grant, which was part of the energy-conservation improvements underwritten by the American Recovery and Reinvestment Act of 2009, replaced lift station pumps at two locations in the city’s sanitary sewer system. “We were confident the new pump would perform significantly

Montgomery Business Journal November/December 2011

better than the old unit it replaced during the one-month trial period,” said Bob Carter, managing engineer with the local office of Goodwyn, Mills and Cawood, which has its headquarters in Montgomery. “The manufacturer also guaranteed the required 25 percent lower energy usage.” The existing units had been in service since the mid-1980s. “As engineers, we are always trying to get the most efficient equipment for our municipal clients,” Carter said. “If a client makes it a priority, I could easily specify another project the same way, again.” BOWMAN OFFICIALLY CERTIFIED IN FACIAL PLASTIC AND RECONSTRUCTIVE SURGERY MONTGOMERY - Montgomery Otolaryngology recently announced that Dr. Michael Bowman is officially board certified in facial plastic and reconstructive surgery. Montgomery Otalyrngology is located on the Jackson Hospital campus. Bowman is now dually certified in both otolaryngology head and neck surgery and facial plastic and reconstructive Surgery. He will continue his practices of general otolaryngology with a special interest in pediatrics as well as facial plastic and reconstructive surgery, including aesthetic facial surgery. UAB HEALTH CENTER MONTGOMERY RECEIVES GRANT FROM BLUECROSS BLUESHIELD OF ALABAMA MONTGOMERY - The UAB Health Center Montgomery has been awarded a grant

of $25,000 from the Caring Foundation of BlueCross BlueShield of Alabama. This is the third consecutive year that UAB Montgomery has received financial support from the Caring Foundation. The funds will support the organization’s Continuing Medical Education (CME) activities. Since 1969 with its initial continuing educational program, the UAB Health Center Montgomery has been training internal medicine residents. ALABAMA ARTIFICIAL LIMB AND ORTHOPEDIC SERVICE SELECTED AS IWALK CERTIFIED BIONICS CENTER MONTGOMERY - Alabama Artificial Limb and Orthopedic Service Inc. (AALOS) announced its selection as an iWalk Certified Bionics Center. With this designation, AALOS will serve as one of the nation’s first prosthetics providers to commercially offer the PowerFoot BiOM, the first robotic lower leg system to normalize metabolic efficiency and increase self-selected walking speed for amputees. AALOS‘s recognition as an iWalk Certified Bionics Center signifies the company’s standing as one of the leading prosthetic providers in the nation, including a demonstrated excellence in client service, clinical care and quality fabrication. As a charter member of the BiOM distribution network, AALOS continues its commitment to embracing and partnering with proven technology suppliers to provide the best prosthetic solutions available for amputees. For information, visit www.aalos.com.

BUSINESS BUZZ FOUNDATION’S WALK RAISES $85,000-PLUS FOR KIDNEY PATIENTS

designed for African-American audiences, has launched and is available on WSFA 12.2.

MONTGOMERY - The Alabama Kidney Foundation raised more than $85,000 for Alabama’s kidney patients in need.

Bounce TV broadcasts 24 four hours a day, seven days a week and is designed for carriage on the digital signals of local television stations. The new network features a programming mix of theatrical motion pictures, live sporting events, documentaries, specials, inspirational faith-based programs, off-net series, original programming and more.

The 2011 Walk-a-Thon featured a continental breakfast, small lunch and lots of entertainment. In addition to the door prizes, there was also a live and silent auction, a children’s area featuring face painting and a moonwalk, a food demonstration by Jeff Verner of PepperTree Steaks N’ Wines as well as a Bocce Ball Tournament in conjunction with the walk. The Alabama Kidney Foundation serves kidney patients by providing financial assistance, education and support services. The foundation promotes public education to prevent kidney disease and raise organ donation awareness. More than 300 people participated in the 24th annual walk-a-thon at Baptist Health’s DeBoer Building. “Kidney disease is rampant in Alabama, particularly among African-Americans, ranking Alabama fifth in the nation for the occurrence,” said Amy Godsoe, regional director of the Alabama Kidney Foundation’s Montgomery office. “Over 400,000 Alabamians suffer from kidney disease and many of these patients live at or below the poverty level due to the devastating effects of this chronic illness.” FIRST-EVER BROADCAST TV NETWORK FOR AFRICANAMERICANS DEBUTS MONTGOMERY – Bounce TV, the nation’s first-ever over-theair broadcast television network

Live sports and events are part of the Bounce TV schedule and the network also has a multiyear rights agreement with Urban Sports Entertainment Group (USEG) to televise both football and basketball games from the nation’s largest AfricanAmerican athletic conference, the Central Intercollegiate Athletic Association (CIAA.) The Bounce Network on WSFA 12.2 can be found free over the air on 12.2 or on Andy Cable channel 92.1, Troy Cablevision channel 102, Time Warner channel 306, Eufaula-Brighthouse channel 288, Greenville/WetumpkaBrighthouse channel 213, Com-Link channel 842, Charter channel 136, Knology channel 121, and Opp Cable Vision channel 104 TOTAL LIQUIDATION CHANGES NAME TO UNBELIEVABLE FLOORING AND DECOR

DISCOVER THE MANY REASONS HOMEOWNERS ARE GIVING THANKS THIS holiday season. 96% of our customers would refer The Maids to friends and family.

Call now to receive your free, no-obligation estimate

334-277-7749 www.MAIDS.com

MONTGOMERY - Total Liquidation has changed its name to Unbelievable Flooring and Decor. “When we opened our doors in January, 2004, we were Total Liquidation,” said co-owner (Continued on page 38)

November/December 2011 Montgomery Business Journal

BUSINESS BUZZ (CONTINUED FROM PAGE 37)

(

PUT A LITTLE

PO PORK ORK RK PO OR RK HOLIDAY H HO OLIDAY OLID OL LID IDA DA AY OLIDA ID AY PARTY! PA PART ART ART Y!! PAR RTY TY I N YOU R

Barbara Handmacher. â&#x20AC;&#x153;We were not really sure of our product line, but we knew everything we sold would be at liquidation prices. Now eight years later, we have evolved into three stores under one roof. The 40,000-square-foot warehouse has a large selection of hard-surface flooring, ceramic and porcelain tile, natural stone such as travertine, slate and marble, and laminate and hardwoods in numerous colors. In addition to flooring, the company features all types of furniture: sofas, loveseats, recliners, bedrooms, dining rooms and much more. The company also offers brand-name mattresses. Unbelievable Flooring and Decor is located at 5730 Woodmere Blvd. on the corner of Eastern and Woodmere boulevards. The phone number is (334) 396-8490.

Call us for

catering your next

crowd, celebration, or company Party for the holidays

273-RIBS

For information about the store, visit the website www. UnbelievableFlooringandDecor. com or e-mail at unbelievableflooringanddecor@ gmail.com.

$KN PK "NA=IH=J@ SEHH @K PDA CNEHHEJC =J@ @AHERAN "AHE?EKQO -QN HK?=H IAJQ EO KJHEJA :

www.dreamlandbbq.com Barry Dean

ALABAMA BASEBALL COACHES ASSOCIATION SCHEDULES, DINNER, SILENT AUCTION

!INÂ´T NOTHING LIKE ÂłEM NOWHERE Lu n c h a n d D i n n e r

Dine-in

C a r ry - o u t

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Now Open in The alley montgomeryâ&#x20AC;&#x2122;s spicy new entertainment district Tallapoosa street, downtown

Montgomery Business Journal November/December 2011

MONTGOMERY â&#x20AC;&#x201C; The Alabama Baseball Coaches Associationâ&#x20AC;&#x2122;s â&#x20AC;&#x153;First Pitchâ&#x20AC;? Dinner and Silent Auction will be Dec. 8 at the RSA Activity Center. ESPN â&#x20AC;&#x153;Baseball Tonightâ&#x20AC;? analyst and game commentator Bobby

Valentine is the guest speaker. He played 10 years in the major leagues and then spent 15 years as a manager for the Texas Rangers and New York Mets. The silent auction, along with a cash bar, will be from 5:30 p.m. to 6:45 p.m. The dinner will begin at 7 p.m. Tables of eight cost $625, while individual dinner tickets are $95. Table sponsors who pay $1,000 will be allowed to attend a private reception with Valentine from 5:30 p.m. to 6:30 p.m. at the activity center. For table, individual ticket and event information, visit www. alabca.org and find the â&#x20AC;&#x153;First Pitchâ&#x20AC;? dinner link on the home page. You may print a form and send a check in, or pay on-line with a credit card. For information, contact Barry Dean, executive director of the Alabama Baseball Coaches Association (ALABCA), at (334) 676-0434, or e-mail him at: barrydean_alabca@bellsouth.net. There will also be an ALABCA youth league baseball clinic for players in grades one through nine Saturday, Dec. 10 at Alabama State Universityâ&#x20AC;&#x2122;s baseball field. Local High school and college coaches will assist in conducting the clinic. The clinic, which will be from 9 a.m. to 4 p.m., is $75. Boys Club baseball players will be allowed to attend the clinic free of charge. Pizza and a soda will be provided for the participants at lunch. A clinic flier is available at www.alabca.org.

BUSINESS BUZZ

“I can do all things through Christ who strengthens me” Philippians 4:13 Rodney Barstein (left) and his brother Mark Barstein, the owners of Simply Fashion Stores, were named Retailers of the Year for the category of annual sales of more than $20 million.

SIMPLY FASHION STORES CAPTURES RETAILER OF THE YEAR AWARD BIRMINGHAM – Simply Fashion Stores Ltd. Won the Retailers of the Year gold award in the annual sales category of more than $20 million. The company, which has stores in Bessemer, Birmingham, Huntsville, Montgomery, Selma, Talladega and Tuscaloosa, is owned by Rodney and Mark Barstein and the Janak Shah family. “Fifty something years ago, my dad was involved in a company called Bargain Town USA, so we’ve grown up in retailing,” Rodney Barstein said in accepting the award. “We are celebrating our 20th year at the Simply Fashion Stores. Every day when I wake up, I think about the 1,800 families that we are responsible for: the jobs that they have and what they do for us. We wouldn’t be here if it wasn’t for them.” The Alabama Retail Association, in cooperation with the University of Alabama at Birmingham recognized the state’s top retailers at a luncheon in Birmingham.

W. Inge Hill Jr.

HILL, HILL, CARTER, FRANCO, COLE & BLACK ATTORNEY NAMED TOP REAL ESTATE LAWYER MONTGOMERY – Hill, Hill, Carter, Franco, Cole & Black announced that W. Inge Hill Jr. was named Montgomery’s best real estate lawyer for 2012 by Best Lawyers.

CELEBRATING 11 YEARS OF SUCCESS!

Hill has been practicing for 37 years and been listed by Best Lawyers since 1987. Best Lawyers is the oldest and most prestigious peer review publication in the legal profession. It is an annual referral guide that utilizes more than 3.9 million peer evaluations to identify outstanding attorneys. Hill will be featured in the 18th edition of The Best Lawyers in America. Hill, Hill, Carter offers a full range of legal services, concentrating on litigation defense and business law across a wide range of specializations. •

Success Unlimited Academy, LLC Montgomery’s Foremost Institution Dedicated to Individualized Education

Programs & Special Services College Preparatory Education • Individualized Tutoring Quality Instruction by Certified Teachers Distance Education • Evening School Programs for Special Needs Students

Interdisciplinary Arts Programs Music Education • Drama Productions • Dance Education After school programs (Praise Band, Guitar Lessons)

(334) 213-0803 • SACS Accredited 2328 Fairlane Drive • Montgomery, AL 36116 www.suacademy.com • K-12

November/December 2011 Montgomery Business Journal

Members on the Move PFMI ANNOUNCES STAFF ADDITIONS

RIVER BANK & TRUST NAMES EXECUTIVE VICE PRESIDENT PRATTVILLE – Gene C. Crane has joined River Bank & Trust as executive Gene Crane vice president and business banking manager.

Marcus Riley

In this new role, Crane will be responsible for leading the bank’s efforts in the management and growth of business banking relationships. “The business client is a key part of our community banking focus at River Bank & Trust, said River Bank & Trust President and CEO Jimmy Stubbs. “With Gene joining our team, we will be better positioned to focus the necessary resources to continue our growth in this important line of business.” Crane has been part of the River Region banking community for nearly 25 years where he has gained extensive experience in the commercial and business banking arenas. He is a graduate of the University of Alabama and completed the Stonier Graduate School of Banking at the University of Delaware.

Bambi Landers

Cary Smith

River Bank & Trust is a locally owned and operated community bank with offices in Montgomery, Prattville and Wetumpka. Blake Faulk

FIRM HIRES CIVIL ENGINEER FOR MONTGOMERY OFFICE MONTGOMERY - Goodwyn, Mills & Cawood Inc. announced that Neely Ketzler Neely Ketzler has recently joined the firm’s Montgomery office. Ketzler graduated from the Georgia Institute of Technology in civil engineering and works as a project engineer in the Montgomery municipal engineering department. Her responsibilities include project design and management of infrastructure projects for municipalities throughout the state.

Ellen Huges

MONTGOMERY PFMI has announced the addition of Marcus Riley and Bambi Landers to the PFMI management team. In other personnel moves, Cary Smith was promoted to KEMCO service manager; Blake Faulk has returned to the company and Ellen Hughes (corporate support), Courtney Fergusson (human resources administrator) and Kim Engle (accounting special projects) were recently hired. Riley, who joined PFMI as a project director, is a veteran property management professional with 30 years of experience in all facets of construction and facilities maintenance operations. He has an associate degree in business administration from Enterprise State Junior College. Prior to joining PFMI, he had a 13year career with a Fortune 500 media company as its building manager.

Landers comes to PFMI after working 12 years for a nationally recognized Courtney Ferugsson top 50 bank as a facilities manager, where she was responsible for the day-to-day operations of three corporate buildings in the Montgomery area. She also worked 13 years for an architect and engineering firm,

Montgomery Business Journal November/December 2011

where she was responsible for research, control of documentation and served as the liaison for company management among the architects and engineers, government officers and contractors. She has extensive expertise in database management, tracking, development and implementation. Landers attended Huntingdon College and received certification in paralegal services. PFMI is a Montgomery-based facility maintenance provider of services inclusive of HVAC, landscaping, housekeeping, repair and maintenance, special projects, adverse weather preparation and response and lighting. PFMI’s family of services includes Facility Repair Services, US Lawns, Hospitality Plumbing and KEMCO Facilities Services. HENIG JOINS STERLING BANK AS RETAIL FINANCIAL CONSULTANT MONTGOMERY - Sterling Bank announced that Heath Heath Henig Henig has been hired as a Synovus Securities Financial consultant. “We are excited to have someone with Heath’s extensive background in asset management join the Sterling Bank and Synovus Securities team,” said Alan Worrell, president and CEO of Sterling Bank. “His expertise in creating financial strategies and investment solutions will benefit our clients throughout the region.” Henig has more than 12 years of investment experience, including retail brokerage at Morgan Stanley Dean Witter and SouthTrust Bank. He has also worked in the trust asset management area, including specializing in municipal, institutional and foundation fixed income assets. He most recently worked for TD Ameritrade in Birmingham. Henig graduated from Auburn University with a bachelor’s degree in finance. Sterling Bank, a division of Synovus Bank, operates four branches in the Montgomery and Prattville markets. Synovus Bank is a Georgia-chartered bank that provides commercial and retail banking, investment, and mortgage services to customers

through 30 locally branded divisions, 323 offices and 456 ATMs in Georgia, Alabama, South Carolina, Florida and Tennessee. EXIT HODGES REAL ESTATE ANNOUNCES HIRE

Jeff Samuel

MONTGOMERY - Jeff Samuel has joined Exit Hodges Real Estate in Montgomery.

“We’re excited to welcome Jeff to Exit Realty,” says Paul Hodges, broker of the Exit Hodges Real Estate. “Exit is growing and attracting quality business people like Jeff each and every day.” Samuel began his real estate career after serving as a U.S. Army officer for 29 years. “My goal and burning ambition is to have satisfied clients who feel they received my best effort and profited from our association” Samuel said. Exit Hodges Real Estate is located at 1065 N. Eastern Blvd.

BUSINESS INTERIORS NAMES DIRECTOR OF SALES

JENKINS JOINS SCORE TEAM AT SMALL BUSINESS RESOURCE CENTER MONTGOMERY - Pernell Lamont Jenkins is a Pernell Jenkins recent addition to the Service Corps of Resource Executives (SCORE) counseling team. He is an assistant vice president/ financial center leader II with Branch Banking and Trust Bank (BB&T). The native of Montgomery is a graduate of Sidney Lanier High School. He is also an alumnus of Troy University, Faulkner University and Auburn University at Montgomery. He has a bachelor’s degree in human resource management and psychology and a master’s degree in business administration.

Bryan Mullins

MONTGOMERY Bryan Mullins has been named director of sales for Business Interiors Inc.

Mullins has 13-plus years of management experience and will oversee the contract furniture sales division in Montgomery, and four other locations across Alabama and the Gulf Coast. Mullins previously worked as the Alabama sales representative for BI’s flagship manufacturer, Knoll. Birmingham-based Business Interiors is a leading contract furniture dealership, specializing in project management, space design and installation. The company has offices in Montgomery, Huntsville, Dothan and the Gulf Coast. •

The SCORE counseling team operates out of the Montgomery Area Chamber of Commerce’s Small Business Resource Center.

November/December 2011 Montgomery Business Journal

RIBBON CUTTINGS & GROUND BREAKINGS

HERE WE GROW AGAIN

Capitol Oyster Bar @ Montgomery Marina 617 Shady Street Montgomery, AL 36104 334-239-8958 www.capitoloysterbar.com Lewis & Karen Mashburn-Owners Restuarants-Seafood

Griffin-Wilkes Insurance, Rudy Osing-Agent 600 South Court Street, Centerfield Montgomery, AL 36104 334-221-8606 Rudy Osing-Risk Manager NSACE Insurance Companies/Services

MAX Credit Union-Lanier High School Branch P.O. Box 244040 Montgomery, AL 36124-4040 334-262-4528 www.mymax.com Nitaya Henderson-Branch Manager Banks & Credit Unions

Knology of Montgomery 770 North Eastern Boulevard Montgomery, AL 36117 334-356-1000 www.knology.com Arthur Loescher-General Manager Cable Television Services

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Montgomery Business Journal November/December 2011

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New Members Automobile Dealers-Used Pigg Enterprises, Inc Robert Pigg 1183 South Memorial Drive Prattville, AL 36067 334-491-7444

Banks MAX Credit Union - Lanier High school Branch Nitaya Henderson P.O. Box 244040 Montgomery, AL 36124-4040 334-262-4528

Builders-Residential Stone Martin Builders Mitchell Martin 404 South Eighth Street Opelika, AL 36801 334-742-8050

Consulting Services Erate 360 Solutions, LLC Kasey Oakley 503 Coliseum Boulevard Montgomery, AL 36109 334-399-6492 JML Development Mike Lee 525 Arrowhead Forest Drive Montgomery, AL 36117 334-430-2827

Counseling A Peace of Wisdom Princess Coleman P.O. Box 10064 Montgomery, AL 36108 334-219-0196

Gifts & Specialty-Retail Glitter Girls Helen H. Holston 562 Pine Level Lane Ramer, AL 36069 334-399-0634

Individuals Charles C. Thomas R. Ph. Charles C. Thomas R. Ph. 3124 Malone Drive MontgomeryAL 36016 334-279-3823

Insurance Companies/Services

Real Estate Sales and Development

Transportation Equipment-Mfr.

Barbara Bonds REAL Estate, LLC Barbara Bonds 7051 Fain Park Drive, Suite 200 Montgomery, AL 36117 334-201-1234

Hartzell Engine Technologies LLC Mike Disbrow 2900 Selma Highway Montgomery, AL 36108 334-386-5400

Restaurants

Uniform Supply Service

Alabama Insurers, Inc. Tony Rogers 2851 E Southern Boulevard Montgomery, AL 36116 334-517-1221

The Egg & I Bobby McGurk 2920 Zelda Road, Suite E Montgomery, AL 36106 334-277-0802

Northwestern Mutual Financial Network Ken Azar 421 Emery Drive Birmingham, AL 35244 205-444-5038

RestaurantsFine Dining

Photographers Picture This The Image Builder Jacque Chandler P.O. Box 20891 Montgomery, AL 36120 334-669-0736

Physicians Vaughn Urgent Care Vicki Keith 9540 Wynlakes Place Montgomery, AL 36117 334-395-9933

Azarâ&#x20AC;&#x2122;s Uniforms, Inc. Mark Azar 5767 Carmichael Road Montgomery, AL 36117 334-244-1133

Veterinarians

La Jolla Restaurant Jon Deal 6854 East Chase Parkway Montgomery, AL 36117 334-356-2600

Goodwin Animal Hospital Donald C. Goodwin 4701 Atlanta Highway Montgomery, AL 36109-3211 334-279-7456

The Olive Room Ken Register 121 Montgomery Street Montgomery, AL 36104 334-262-2763

Goodwin Animal Hospital & Pet Resort Donald C. Goodwin 11485 Chantilly Parkway Montgomery, AL 36064 334-279-0500

Telecommunications Windstream Communications Pat Manning 1 Chase Corporate Drive Suite 110 Birmingham, AL 35244 334-430-0000

Printers/ Copy Centers RR Donnelley Jim Hamblin 8245 Tournament Drive, Suite 285 Memphis, TN 38125 901-748-8552

November/December 2011 Montgomery Business Journal

Economic Intel Unemployment Data Civilian Labor Force August p 2011

Area Montgomery MA

July r 2011

Unemployment Rate August r 2010

July r 2011

August r 2010

169,444

170,101

167,526

9.90%

9.10%

24,330

24,450

24,125

8.70%

8.80%

8.20%

15,800

15,878

15,657

7.30%

7.50%

6.80%

36,123

36,223

35,824

9.10%

8.40%

4,741

4,818

4,682

16.60%

17.60%

15.80%

Montgomery County

104,249

104,608

103,011

10.10%

9.30%

Montgomery City

94,262

94,553

93,048

10.00%

9.10%

Birmingham-Hoover MA

528,867

528,053

514,166

9.00%

9.30%

9.00%

Birmingham City

98,358

98,269

95,867

11.50%

11.80%

11.70%

212,146

211,499

206,178

8.10%

8.40%

7.40%

93,339

93,219

90,729

8.20%

8.60%

7.50%

192,294

192,827

187,535

11.00%

11.20%

10.10%

89,734

90,002

87,207

11.50%

11.80%

10.40%

2,174,642

2,168,561

2,124,231

9.70%

10.10%

9.40%

154,344,000

154,812,000

154,678,000

9.10%

9.30%

9.50%

Autauga County Prattville City Elmore County Lowndes County

Huntsville MA Huntsville City Mobile MA Mobile City Alabama United States

MA=Metropolitan Area. pPreliminary rRevised Estimates prepared by the Alabama Department of Industrial Relations in Cooperation with the Bureau of Labor Statistics, based on 2010 benchmark

August p 2011

Montgomery Business Journal November/December 2011

Montgomery Regional Airport SPETEMBER 2011 Air Carrier Operations

SEPTEMBER 2010

Year over Year % Change

YTD 2011

Year over Year % Change

YTD 2010

983

1,113

-11.7%

8,759

9,514

-7.9%

5,051

6,206

-18.6%

47,632

53,466

-10.9%

Enplanements

15,866

17,084

-7.0%

137,566

139,120

-1.1%

Deplanements

15,387

16,337

-5.8%

136,399

139,390

-2.1%

Total Passengers

31,253

33,421

-6.5%

273,945

278,510

-1.6%

Total Operations

Source: Montgomery Regional Airport (MGM) Dannelly Field

Airline Fares

Hyundai Sales

Roundtrip airfare comparisons from Montgomery, Birmingham and Atlanta airports to key destinations. Destination

VEHICLE

SEP 2011

SEP 2010

YTD 2011

YTD 2010

Accent

4,525

4,885

40,770

39,767

Sonata

18,181

20,639

174,761

149,123

Elantra

14,386

10,062

147,922

101,022

Santa Fe

6,213

3,719

57,981

60,829

299

1,407

2,439

Montgomery

Birmingham

Atlanta

Baltimore (BWI)

$303

$297

$222

Boston (BOS)

$276

$308

Charlotte, NC (CLT)

$158

$228

Chicago (ORD)

$348

$274

$230

Azera

Cincinnati (CVG)

$328

$268

$272

Tucson

3,724

2,730

34,896

29,460

Dallas/Ft Worth (DFW)

$264

$285

Veloster

834

N/A

834

N/A

Denver (DEN)

$313

$259

$221

Veracruz

817

992

6,836

6,088

Detroit (DTW)

$412

$272

$262

Genesis

3,000

3,230

25,224

21,319

Houston (HOU)

$349

$226

$281

Indianapolis (IND)

$349

$336

$232

292

N/A

2,283

N/A

Las Vegas (LAS)

$423

$368

$336

52,051

46,556

492,914

410,047

Los Angeles (LAX)

$363

$320

$288

Memphis (MEM)

$259

$318

$248

Miami (MIA)

$388

$270

$134

Nashville (BNA)

$238

$138

$322

New Orleans (MSY)

$315

$275

$263

New York (JFK)

$359

$264

$306

Orlando (MCO)

$343

$234

$235

Philadelphia (PHL)

$300

$200

$322

Pittsburgh (PIT)

$356

$362

$242

St Louis (STL)

$238

$138

$236

Seattle (SEA)

$368

$336

$278

$1,162

$1,126

$1,146

Tampa (TPA)

$350

$252

$225

Washington DC (DCA)

$366

$308

$242

Seoul, Korea (SEL)

Equus Total

Source: Hyundai Motor America

Date of travel: Nov. 15-20, 2011. Date of pricing: Oct. 9, 2011. Source: travelocity.com

November/December 2011 Montgomery Business Journal

Sales Tax Collections SEPTEMBER 2011

SEPTEMBER 2010

Year over Year % Change

Montgomery County

$3,126,695

$2,988,779

4.61%

$29,002,104

$28,413,708

2.07%

City of Montgomery

$7,174,533

$7,105,849

0.97%

$66,991,093

$65,243,426

2.68%

Pike Road

$150,063

$118,854

26.26%

$1,682,686

$1,780,195

-5.48%

Autauga County

$567,171

$543,640

4.33%

$5,303,781

$5,333,873

-0.56%

$1,492,792

$1,050,945

42.04%

$12,380,888

$10,739,084

15.29%

Prattville Elmore County

YTD 2011

Year over Year % Change

YTD 2010

Wetumpka

$429,711

$442,071

-2.80%

$4,095,671

$4,074,484

0.52%

Millbrook

$459,144

$431,120

6.50%

$3,303,532

$4,111,750

-19.66%

Sources: Montgomery County Commission, City of Montgomery, City of Pike Road, Autauga County Commission, City of Prattville, Elmore County Commission, City of Wetumpka, City of Millbrook Note: YTD numbers are January 2010 thru current month.* Did not receive this months numbers.

Montgomery Metro Market Home Sales AUGUST 2011

JULY 2011

Month/Month % Change

AUGUST 2010

Year/Year % Change

Statewide AUGUST 2011

Median Price

$125,650

$138,900

-9.54%

$144,450

-13.01%

$123,457

Average Price

$145,872

$156,456

-6.76%

$151,709

-3.85%

$146,798

Units Listed

2,939

3,006

-2.23%

3,288

-10.61%

36947

Months of Supply

10.7

0.00%

13.2

-18.94%

10.2

Total # Sales

275

280

-1.79%

249

10.44%

3625

Days on Market

3.13%

17.86%

163

Source: Alabama Center for Real Estate (ACRE), The University of Alabama

Quarterly Reports QUARTERLY REVENUES

NET INCOME

EARNINGS ESTIMATE

YEAR-AGO REVENUES

Best Buy

$11,4B

$177M

$0.47

$0.52

$11.3B

$254M

AutoZone

$2.6B

$301.5M

$7.18

$6.98

$2.5B

$268.9M

Sales rose 8.1%

(Red Lobster, Olive Garden, LongHorn Steakhouse)

$1.9B

$106.6M

$0.78

$1.8B

$113.1M

Hurricane Irene reduced earnings by 2 cents a share

Family Dollar Stores

$2.1B

$79.8M

$0.66

$0.63

$2B

$74M

Rite Aid

$6.3B

(-$94.7M)

(-$0.11)

(-$0.18)

$6.2B

(-$199.3M)

Bed, Bath & Beyond

$2.3B

$229.4M

$0.93

$0.84

$2.1B

$181.8M

Marriott International

$2.9B

(-$179M)

(-$0.52)

$0.29

$2.7B

$83M

$330.6M

$3.1M

$0.05

$0.06

$302.1M

$12.4M

Profit decreased 75%

Costco

$27.6B

$478M

$10.80

$1.10

$23.6B

$432M

Sales rose 17%

Yum! Brands

$3.3B

$383M

$0.80

$0.82

$2.9B

$357M

Plans to open 600 units in China

Walgreen

$18B

$792M

$0.87

$0.55

$16.9B

$470M

Profit jumped 69%

NAME

Darden Restaurants

Ruby Tuesday

(Pizza Hut, KFC, Taco Bell)

EARNINGS PER SHARE

Montgomery Business Journal November/December 2011

YEAR-AGO NET INCOME

NOTABLE

Profit declined 30% on lower sales of TVs, smart phones

Plans to open 450-500 stores in fiscal 2012 Revenue increased nearly 2% Profit surged 26% Before charges, net income was $104M

2011 Capital City

Christmas Parade Kick off the Season with the Capital City’s very merry Christmas Parade filled with oh-so-jolly floats and festivities. Celebrate this special season and gather with loved ones for a night that is sure to make all your Christmas dreams come true!

C a p i t a l C i t y C h r i s t m a s Pa r a d e

Friday, December 2, 2011

Parade Route from Capitol Steps to Court Square Fountain

schedule of events

5:15 pm Governor’s Tree Lighting 6:00 pm Capital City Christmas Parade 7:30 pm Mayor’s Tree Lighting

2011 float contest

Create your own Christmas masterpiece and be a part of the festivities. Entry categories include Business Floats, Floats by Adults, and Floats by Children/Youth. Registration deadline is November 18, 2011. Float staging held at Cramton Bowl.

Pa r a d e e n t ry f o r m s at w w w. m o n t g o m e r y a l . g o v F o r m o r e i n f o r m at i o n c o n tact

Carol Gunter, 334-625-2000 or cgunter@montgomeryal.gov

November/December 2011 Montgomery Business Journal

Post Office Box 79 Montgomery, AL 36101

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