Insights from the Synchronist Reporting System速 Volume 3, November 2010
business Broadcast We have continued to see challenging times for our national economy and the industries in Morgan County in 2010. However, companies are beginning to focus on making capital expenditures and hiring for the future. Opportunities for improving business processes and services and for MCEDA and our community partners to find Greatest Achievements creative ways to better serve our industrial customers is always a priority. Quality/Safety Improvement Implemented The Business Broadcast data gathering process always begins with the question “What has been your company’s greatest achievement over the past three years? The graph below depicts the answers to this question and highlights the continued resilience of companies in Morgan County in coming out of the economic downturn with renewed business success.
Overcoming Business Challenges Business Growth/Sales Increase Products or Services Added Market or Facility Expansion or Merger Complete Awards/Recognition Employment Growth Other 0
2
4
6
8
10
12
14
Number of Responses
16
18
20
Over 110 companies in Morgan County were contacted in 2010 to request an existing industry visit. Of those, 36 companies participated in the data gathering process for The 2010 Business Broadcast. The results contained in these pages present a picture of the state of our existing industries, and in some cases, 2009 comparison data.
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• • •
Looking toward the future is the ultimate goal of this process. Based on insights gained from this year’s report MCEDA is working on: • Commending and thanking community service areas who are meeting the needs of our industrial community • Continuing dialogue and actions to improve community service areas and address legislative concerns • Working with the Decatur-Morgan County Chamber of Commerce’s Workforce Development Coalition and other partners to promote workforce development in the county. This will include continued strategic planning efforts and the upkeep of Careerpathwayinfo, the Career Pathway Facebook page, and the Workforce Development Resource Guide and Matrix • Continuing to partner with AIDT to deliver free quality Leadership Development courses • Exploring the development of an existing industry raw materials consortium in order to allow existing industries to work together to integrate business processes and reduce transportation costs. Thank you to all of the industries who opened their doors to us for this process and to our board members and community partners who assisted in collecting this information. We hope you will find the information contained in the next few pages informative and valuable.
Volume 3, November 2010
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workforce development throughout the county. The Careerpathway.info site recently won the “Outstanding Website” award given at the Web Marketing Associations’ International Web Awards competition. The Annual Industrial Wage and Benefit Survey was revised and updated based on existing industry feedback. Participation in the survey increased by 12 companies making the data more beneficial to all participants. In order to continue to foster the development of emerging and growing product markets for existing industries, MCEDA partnered with Alabama Technology Network (ATN) to deliver Profit 101. Profit 101 is a half-day, intensive look into growing a business through new development taken from the Eureka! Winning Ways strategy. Four Morgan County companies participated in the process and one company participated in a full Eureka! Winning Ways process with the support of ATN and MCEDA. Two Morgan County companies took advantage of TVA’s Valley Investment Initiative, helping promote business expansion and investment at their facilities. Fourteen companies announced expansions to their facilities. Areas of legislative concern noted in 2009 interviews were addressed with the legislative delegation, specifically cap and trade, EFCA and EPA legislation.
business broadcast
Since the 2009 publication: Over companies Morgan County were contacted in 2010 to request an existing industry visit. below Of those companies, 36 companies Over 110 companies in Morgan County were contacted in 2010 to request an existing industry visit. Of those companies, 36 companies • 110Areas ininthe community service evaluation that received average ratings or showed decreased ratings from previous year participated in the data gathering process for The 2010 Business The results contained in these pages in present a picture of the were state of gathered to address concerns and pinpoint participated in the data gathering process for The 2010 Business Broadcast. The results contained in these pages present a picture of the state of were targeted for consultation and Broadcast. improvement. Stakeholders these areas our existing industries, and in some cases, 2009 comparison data. our existing industries, and in some cases, 2009 comparison data. specific action items. • In partnership with the Decatur-Morgan County Chamber of Commerce’s Workforce Development Coalition, strategic workforce Since the 2009 publication: Since the 2009 publication: development actions have been implemented. Careerpathway.info has been launched as a comprehensive workforce and career Areas in the community service evaluation that received below average ratings or showed decreased ratings from previous year were •• Areas in the community service evaluation that received below average ratings or showed decreased ratings from previous year were development website for Morgan County. In addition, Guide, Matrix and Facebook page have targeted for consultation and improvement. Stakeholders in these areas were gatheredatoWorkforce address concernsDevelopment and pinpoint specificResource action targeted for consultation and improvement. Stakeholders in these areas were gathered to address concerns and pinpoint specific action been items. developed and advertised to the community. This effort has developed out of a concern for the lack of collaboration in items.
1
respondent Demographics Respondent Demographics Respondent Demographics Morgan County a diverse arraycompanies. of industrial companies. The following Morgan County hashas a diverse array of industrial The following displays information on the types of businesses surveyed. As evident Morgan County has a diverse array of industrial companies. The following displays information on the types of businesses surveyed. As evident displays information onlastthe ofprocess businesses surveyed. Assmaller evident by The majority of companies by the comparison data from year,types this year’s resulted in data gathered from industries. by the comparison data from last year, this year’s process resulted in data gathered from smaller industries. The majority of companies in 2010data have less than 25 employees are privately or family owned. participating in 2010 have less than 25 employees and are privately held or family owned. the participating comparison from last year,andthis year’sheld process resulted in data gathered from smaller industries. The majority of companies participating in 2010 have less than 25 employees and are privately held or family owned.
Number of Employees
Business Sector Sector Business
251+ 101-250
Industrial Goods Goods 55% 55% Industrial
76-100 51-75
Durable Goods Goods Producer Producer Durable 14% 14%
26-50 1-25 0
5
10
15
Consumer Goods Goods Producer Producer Consumer 7% 7%
20
Diversified 3.5% 3.5% Diversified
Number of Companies
Aeronautics and and Defense Defense Aeronautics 3.5% 3.5%
Years Years in Business Years in in Business Business
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respondent demographics
Y YY ee e a aa rr r ss s
2
76-100 76-100 76-100
Wood Products Products 7% 7% Wood
51-75 51-75 51-75
26-50 26-50 26-50
1-25 1-25 1-25 00 0
Building & & Construction Construction Building 10% 10%
55 5
10 10 10 Number of Responses Number of Number ofResponses Responses
15 15 15
20 20 20
Union Presence Presence Union
Yes Yes 2% 2%
Company Company Ownership Company Ownership Ownership Private or Family Owned Private Privateor orFamily FamilyOwned Owned 80% 80% 80%
No No 98% 98%
Public 11% Public Public11% 11%
Foreign Owned 9% Foreign ForeignOwned Owned9% 9%
product development, Industy & Market Changes
New Products Anticipated Within New Products Anticipated 2 Years
Individual employers were asked several questions in regards to their business performance and product development including market share, company sales, product life cycle, and new products developed recently and/or new products anticipated in the near future. Also telling of our business climate is information on industry changes including production for industry segments and pending legislation that could have an impact on business processes.
With 2 Years
Do Do you you anticipate anticipate legislative legislative changes changes that that will will adversely adversely impact impact your your business? business?
No 43%
No No Response Response 13% 13%
Yes 57%
Yes Yes 56% 56%
No No 31% 31%
Certain graphs highlight comparisons between previous Business Broadcast cycle’s information. Improvements in company sales and market share from 2009 are Product Development Industry and Market Changes Product Development Industry and Market Changes positive indicators of a stronger economy. The amount and declining Individual employersof werematuring asked several questions in regards to their business and product development including market share, Individual employers were asked several questions in regards to their business performance and product development including market share, Newperformance Products Introduced Life Life Cycle Cycle Comparison Comparison new company sales, life cycle and products developed Also telling of our product lifeproduct cycles from years past also recently and/or new products anticipated in the near future. 40% company sales, product life cycle and new products developed recently and/or new products anticipated in the near future. Also telling of our 38% 38% 40% in Last 5 Years 36% 36% 36% 35% 36% business climate is information on industryimprovements. changes including production for industry segments and pending legislation that 35% could have an 35% points to positive economic business climate is information on industry changes including production for industry segments and pending legislation that could have an 35%
New Products Introduced in Last 5 Years 30% 30%
25% 25% and market Certain graphs highlight comparison between previous Business Broadcast cycle’s information. Improvements in company sales Certain graphs highlight comparison between previous Business Broadcast cycle’s information. Improvements in company sales and market 20% 20%years 17% 17% share from 2009 are positive indicators of a stronger economy. The amount of maturing and declining product life cycles from past also share from 2009 are positive indicators of a stronger economy. The amount of maturing and declining product life cycles from years past also No 15% 15% points to positive economic improvements. points to positive economic improvements.
42%
50% 50% 40% 40%
28% 26% 26%28%
2009 2009
28% 28%
Emerging Emerging
Growing Growing
Maturing Maturing
Declining Declining No No Response Response
Production in in your your Industry Industry Production
Stable Stable
Decreasing Decreasing No No Response Response
Supply greater greater than than Supply Demand 28% 28% Demand
Demand greater greater than than Demand Supply 17% 17% Supply
7% 7% Increasing Increasing
2010 2010
Balanced 47% 47% Balanced
2010 2010
16% 16%
10% 10% 0% 0%
7% 7%
36% 36%
30% 30% 20% 20%
0% 0%
58% 58%
10% 10% 7% 7%
2009 2009
5% 5%
Yes 58%
Company Sales Company Sales Comparison Comparison 60% 60%
10% 10%
14% 14%
Volume 3, November 2010
70% 70%
product development, Industry & Market Changes
impact on business processes. impact on business processes.
No Response Response 8% 8% No
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Expansion
& Market Information
Export Export Sales Sales
Many companies in Morgan County have capital expenditure plans at their facilities. Of companies surveyed, 47% to expand their local operations within three years. pansion and Market Information pansion andplan Market Information Because existing industry growth is vital to economic success, MCEDA will increase its efforts to follow up with ny companies in Morgan County have capital expenditure plans at their facilities. Of companies surveyed, 47% plan to expand their local ny companies in Morgan County have capital expenditure plans at their facilities. Of companies surveyed, 47% plan to expand their local these companies to support their expansion plans and rations within three years. Because existing industry growth is vital to economic success, MCEDA will increase its efforts to follow up with rations within three years. Because existing industry growth is vital to economic success, MCEDA will increase its efforts to follow up with ensure that they are able to take advantage of all tax se companies to support their expansion plans and ensure that they are able to take advantage of all tax and business incentives available to se companies toand support their expansion and ensure that they are able to take advantage of all tax and business incentives available to business incentivesplans available to qualifying expanding lifying expanding industries. lifying expanding industries. industries.
No No Exports Exports 62% 62% Stable Stable 23% 32% Increasing Increasing 6% 6%
Imports Imports
Does Does your your company company plan plan to to expand expand in in the the next next 3 3 years? years?
No No Imports Imports 67% 67% Decreasing Decreasing 3% 3% Stable Stable 11% 11%
6% 6%
EXPANSION AND MARKET INFORMATION
No No 47% 47% Yes Yes 47% 47%
Increasing Increasing 3% 3%
No No
No No Response Response 16% 16%
Yes Yes No No Response Response
Morgan County recognizes the need to assist companies with expansion and trade issues in order to help our industries remain competitive in the global market place. Therefore, we provide the following services and resources pertaining to these issues:
Primary Markets
Local 17% 17% Local Regional 36% 36% Regional
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National 28% 28% National International 17% 17% International
• Provide assistance with tax, utility, infrastructure and training incentives for expanding industries • Provide grant exploration and support for industries considering expansion. • Host the North Alabama International Trade Association’s (NAITA) annual Trade Tour for Morgan County • Partner with the Alabama Development Office (ADO) and NAITA, when importing and exporting assistance is needed • Mallard-Fox Creek Industrial Park is a part of General Purpose Zone no. 83 and a U.S. Customs Port of Entry, offering resident industries a number of shipping and customs-related advantages
Workforce Evaluation
Because of the importance of workforce development, MCEDA continues to partner with Decatur-Morgan County Chamber of Commerce’s Workforce Development Coalition and other partners to target strategic workforce development efforts. The Careerpathway.info site is being promoted in the community as a resource for career and workforce development information specifically for Morgan County residents and businesses. There have been over 3,700 visits to the site since its launch in December 2009. A key feature of the site includes resources for businesses about workforce development programs and incentives. The site recently won the “Outstanding Website” award given at the Web Marketing Associations’ International Web Awards competition. The Workforce Development Resource Guide and Matrix can also be downloaded from the site. These pieces pinpoint where industries can go to receive workforce development help through various local providers. Industries were asked to rate different areas of the workforce on a scale 1 (low) to 7 (high). Ratings have changed slightly compared to 2009 ratings.
7.00 7.00 6.00 6.00
5.61 5.61
5.00 5.00
5.03 5.03
5.23 5.23
5.53 5.47 5.47 5.53
5.33 5.33
5.91 5.91
4.56 4.56
4.00 4.00
2009 2009 2010 2010
3.00 3.00 2.00 2.00 1.00 1.00 0.00 0.00
Availability Availability
Quality Quality
Stability Stability
Productivity Productivity
Employment Needs Comparison 80% 80%
75% 75% 66% 66%
70% 70% 60% 60% 50% 50% 40% 40%
2009 2009
30% 30% 20% 20% 10% 10%
2010 2010
22% 22%
19% 19% 12% 12%
3% 3%
3% 3%
0% 0% Increasing Increasing
Stable Stable
Decreasing Decreasing
No Response Response No
WORKFORCE EVALUATION
A skilled workforce is imperative to the success of any business community. Changes in workforce ratings have been slight over the past few years. However, many companies cite difficulty finding certain skilled positions as seen in the positions difficult to fill chart.
Workforce Evaluation Evaluation Workforce Comparison Comparison
Positions Positions Difficult Difficult to to Fill Fill Truck Truck Drivers Drivers Skilled Skilled Crafts/Trades Crafts/Trades Sales Sales Drafters Drafters
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Engineers Engineers Machinists Machinists Industrial Industrial Maintenance Maintenance Technicians/Operators Technicians/Operators Welders Welders 0 0
1 1
2 2
33
44
55
66
77
5
Number Number of of Responses Responses Industries were asked to rate different areas of the workforce on a scale of 1 (low) to 7 (high). Ratings have changed slightly
utility Evaluation Utility services and rates are a key issue for our existing industries. TVA provides power generation for the Tennessee Valley and distributors that serve our area include Joe Wheeler Electric Membership Cooperative, Decatur Utilities and Hartselle Utilities. Industries were asked to rate each utility service on a scale of 1 (low) to 7 (high). Consistently all services are given an above average ranking. Comparison has been made between last year’s rankings as well. MCEDA will continue to foster strong relationships with all utility providers in order to meet the needs of existing industry.
Utility Comparison 7 7 6 6
6.6 6.6
6.39 6.39 5.91 5.91
6.16 6.16
5.94 5.94
6.5 6.5 5.97 5.97
6.06 6.06 5.66 5.66
6.03 6.03 5.94 5.94
6.16 6.16 5.67 5.67
5.89 5.89
5 5
UTILITY evaluation
4 4
2009 2009 2010 2010
3 3
Volume 3, November 2010
2 2
6
1 1 Water Water
Sewer Sewer
Natural Gas Gas Natural
Electric Electric
Telecom Telecom
Cellular Cellular
Internet Internet (Speed and (Speed and Access) Access)
community evaluation Strengths Morgan County’s prime location, business climate, and workforce and labor market attributes were key strengths noted this year. Extensive transportation systems including interstate, highway, waterway, and rail promote and support the business community. Tax rates remain low and the work ethic of the labor force provides competitive advantages for businesses. Companies were asked to rate the quality of 23 community services from a business perspective on a scale of 1 (low) to 7 (high). All community service ratings remained above the midpoint.
Community Strengths Strengths Community Workforce/Labor Market Market Workforce/Labor Attributes 24% Attributes 24% Transportation Transportation System/Infrastructure 5% 5% System/Infrastructure Business Climate Climate Positive Positive 35% 35% Business
Location (Including (Including Location Accessibility to Customers Customers & & Accessibility to Suppliers) 24% Suppliers) 24% Cost of of Living/Doing Living/Doing Business Business Cost 3% 3% Community Services Services 3% 3% Community
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Volume 3, November 2010
community evaluation
Quality of of Life Life 5% 5% Quality
7
2010 Service Ratings 2010 Community Community Service Ratings AirCargo Cargo Service Service Air AirlinePassenger Passenger Service Airline Service AmbulanceParamedic Paramedic Service Service Ambulance Chamberof of Commerce Commerce Chamber ChildCare Care Services Services Child Collegesand and Universities Universities Colleges Community Planning Planning Community Community Services Services Community County Services Services County Economic Development Development Economic Fire Protection Protection Fire Healthcare Services Services Healthcare Highways Highways K-12 Schools Schools K-12 Police Protection Police Protection PropertyTax Tax Assessment Assessment Property Public Transportation Public Transportation RegulatoryEnforcement Enforcement Regulatory Streets and Roads Streets and Roads Tech/Community College Tech/Community College Traffic Control Traffic Control Trucking Trucking Zoning and Building Permitting Zoning and Building Permitting
5.625.62
4.794.79
5.9 5.90 5.655.65
4.714.71
4.844.84 5 5.00
4.934.93
4 4.00
6.066.06 5.765.76
5.935.93 6.216.21
5.475.47 5.5 5.50 5.585.58 5.8 5.80
5.5 5.50
4.654.65
6.086.08
4.97
4.97
4.18
4.18
0
0.00
1
1.00
2
2.00
3
3.00
4
4.00
5
5.00
5.53
5.53 6
6.00
7
7.00
Average Rating
Volume 2, November 2009
community services evaluation
Average Rating
8
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Community Service Ratings Air Cargo Service Airline Passenger Service Ambulance Paramedic Service Chamber of Commerce Child Care Services Colleges and Universities Community Planning Community Services County Services Economic Development Fire Protection Healthcare Services Highways K-12 Schools Police Protection Property Tax Assessment Public Transportation Regulatory Enforcement Streets and Roads Tech/Community College Traffic Control Trucking Zoning and Building Permitting
Average Average Average 2008 2009 2010 6.21 5.88 5.62 5.83 5.72 4.79 6.47 6.17 5.90 5.98 5.92 5.65 5.36 5.00 4.71 6.35 6.16 6.06 4.20 5.03 5.76 6.13 5.03 4.84 5.39 5.83 5.00 6.19 6.43 5.93 6.43 6.48 6.21 5.22 5.38 5.47 5.44 5.72 5.50 5.84 5.67 5.58 6.07 5.93 5.80 5.62 5.08 4.93 4.07 4.89 4.00 5.69 5.71 5.50 5.11 5.50 4.65 6.05 6.04 6.08 4.52 4.94 4.97 6.27 5.94 5.53 3.82 5.00 4.18
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There have been slight declines in community service ratings over the past 2 years. This is something that MCEDA will continue to monitor and continue to foster open dialogue with all our community partners to ensure quality services are provided to our industrial sector. Continuous improvement is the goal of this ongoing process.
Slight declines in community service ratings have been over the past two years. This is something that MCEDA will continue monitor and will continue to foster open dialogue with all of our community partners to ensure quality services are provided to our industrial sector. Continuous improvement is the goal of this ongoing process.
MORGAN COUNTY, ALABAMA ECONOMIC DEVELOPMENT ASSOCIATION
300 Market Street NE, Suite 2 Decatur, Alabama 35601 PHONE: (256) 353-1213 FAX: (256) 353-0407 EMAIL: mceda@mceda.org
www.mceda.org