Volume 4, November 2011
Insights from the Synchronist Reporting System速
Business Broadcast Despite challenging economic times, the industries in Morgan County are staged for growth. 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 not only overcoming business and economic challenges, but more importantly a growth in business and sales. In addition to this data, you will see throughout the report a resurgence of business prosperity. Two‐thirds of companies surveyed plan to Despite challenging economic times, the industries in Morgan County are staged for growth. The Business Broadcast expand within the next three years and three‐fourths of companies surveyed plan to introduce new products within the next two years. During data gathering process always begins with the question “What has been your company’s greatest achievement over MCEDA’s 2011 fiscal year (October 1, 2010‐ September 30, 2011) new and expanding industry investment totaled over half a billion dollars and the past three years? The graph below depicts the answers to this question and highlights not only overcoming created over 400 jobs. business and economic challenges, but more importantly a growth in business and sales. In addition to this data, you will see throughout the report a
business Broadcast
resurgence of business prosperity. Two-thirds of companies surveyed plan to expand within the next three years and threefourths of companies surveyed plan to introduce new products within the next two years. During MCEDA’s 2011 fiscal year (October 1, 2010- September 30, 2011) new and expanding industry investment totaled over half a billion dollars and created over 400 jobs.
Business Growth/Sales Increase Market or Facility Expansion Awards/Recognition Employment Growth Workforce Training 0
2
4
6
8
Number of Responses
10
Over 90 companies in Morgan County were contacted in 2011 to request an existing industry visit. Of those companies, 26 companies participated in the data gathering process for the 2011 Business Broadcast. The results contained in these pages present a picture of the state of our existing industries, and in some cases, comparison data from 2009 and 2010.
Since the 2010 publication: • Areas in the community service evaluation that received below average ratings or showed decreased ratings from the previous year were targeted for consultation and improvement. Stakeholders in these areas were gathered to address concerns and pinpoint specific action items. Notably, the area of zoning changes and building permits has shown significant improvement. This is an area we have been targeting for three years. • 17 requests for assistance were made by existing industries through the interview process, all of which were acted upon by MCEDA. • MCEDA and the Chamber solidified their partnership to provide one voice in Workforce Development Services for all of Morgan County. • MCEDA hosted AIDT Leadership Training classes, all of which were filled to maximum enrollment numbers. A new half-day course on teamwork was added to the line-up of these classes that are free to Morgan County industries. • 25 companies announced expansions to their facilities. • Existing Industry expansion investment totaled $374,908,094,creating 217 jobs. 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 • A Morgan County wide Workforce Development Strategic plan in conjunction with the Decatur-Morgan County Chamber of Commerce • Continuing to partner with AIDT to deliver free quality Leadership Development courses and adding a Customer Service course offered in 2012 Thank you to all of the industries who opened their doors to us for this process. We hope you will find the information contained in the next few pages informative and valuable.
business broadcast
Improvements Implemented Overcoming Business Challenges
Volume 4, November 2011
Greatest Achievements
1
respondent Demographics
Morgan County has a diverse array of industrial companies. The following displays information on the types of businesses surveyed. As compared to last year, larger industries were interviewed this year. Many are publicly traded companies. Four out of 22 interviewed have a union presence, but overall union activity has not increased in Morgan County. Respondent Demographics
Business Sector
Morgan County has a diverse array of industrial companies. The following displays information on the types of businesses surveyed. As compared to last year, larger industries were interviewed this year. Many are publicly traded companies. Four out of 22 interviewed have a union presence, but union activity has not increased in Morgan County.
Industrial Goods 54%
Number of Employees
Durable Goods Producer 13% Consumer Goods Producer 18% Years in Business
251+
Y 51-75 e a 26-50 r s 1-25
51-100 26-50 1-25 0
2
4
6
10
respondent demographics Volume 3, November 2010
2
4
6
8
10
12
14
Years in Business
Building & Construction 4%
Number of Responses
Aeronautics and Defense 4%
0
8
Number of Companies
2
Advanced Manufacturing 4%
76+
101-250
76+
Company Ownership Public 62%
Y 51-75 e a 26-50 r s 1-25
Private/Family Owned 35% Non-Profit 3%
0
2
4
6
8
10
12
14
Number of Responses
Company Ownership
product development, Industy
& Market Changes
Individual employers were asked several Market Share Comparison questions in regards to their business performance and product development including market 70% share, company sales, product life cycle and 63% new products developed recently and/or new 58% products anticipated in the near future. Also 60% telling of our business climate is information on industry changes including production for 50% Product Development, Industry and Market Changes industry segments and pending legislation that 43%42% could have an impact on business processes. Certain graphs highlight comparison between Individual employers were asked several questions in regards to their business performance and product development including market share, 40% 36% previous Business Broadcast cycle’s information. company sales, product life cycle and new products developed recently and/or new products anticipated in the near future. Also telling of our Improvements in company sales and market share business climate is information on industry changes including production for industry segments and pending legislation that could have an (no companies saw a decrease in market share this 27% 30% year) from 2009 and 2010 are positive indicators impact on business processes. of a stronger economy. The amount of maturing 20% and declining product life cycles from years past Certain graphs highlight comparison between previous Business Broadcast cycle’s information. Improvements in company sales and market 14% also point to positive economic improvements. 10% share (no companies saw a decrease in market share this year) from 2009 and 2010 are positive indicators of a stronger economy. The amount 0%
Company Sales Comparison 70% 52%
40%
36%
20%
2009 28% 26%
0%
2010
28%
4% Increasing
Stable
No 25%
2011
16%
10%
No Response
New Products Anticipated Within 2 Years
44%
30%
Decreasing
Decreasing
2011
7%
No Response
Yes 75%
Volume 4, November 2011
50%
Stable
58%
60%
Increasing
2010
7%
10%
of maturing and declining product life cycles from years past also point to positive economic improvements.
2009
product development, Industry & Market Changes
3
expansion
& Market Information
Two-thirds of companies surveyed plan to expand within the next three years. Because existing industry growth is vital to economic success, MCEDA has increased its efforts to follow up with these companies to support their expansion plans and ensure that they are able to take advantage of all tax and business incentives available to qualifying expanding industries. Half a dozen companies during Expansion and Market Information the interview process this year were sent information on Two‐thirds of companies surveyed plan to expand within the next three years. Because existing industry growth is vital to economic success, tax abatements and incentives for expanding industries. MCEDA has increased its efforts to follow up with these companies to support their expansion plans and ensure that they are able to take The exports sales graph reflects companies who export advantage of all tax and business incentives available to qualifying expanding industries. Half a dozen companies during the interview process finished goods directly (as opposed to through a this year were sent information on tax abatements and incentives for expanding industries. distributor) and imports reflect only raw materials imports. The exports sales graph reflects companies who export finished goods directly (as opposed to through a distributor) and imports reflect only raw materials imports.
Expansion Plans Comparison
71%
67%
EXPANSION AND MARKET INFORMATION Volume 4, November 2011
4
Increasing 0% No Response 16%
Primary Markets
Local 4%
International 35%
47% 2009
40%
2010
33%
29%
2011
20% 10%
Stable 16%
National 26% 47%
50%
0%
Decreasing 0%
Regional 35%
60%
30%
No Imports 86%
80% 70%
Imports
6%
No
Yes
No Response
Morgan County recognizes the need to assist companies with expansion and trade issues in order to help our industries remain Morgan County recognizes the need to assist companies with expansion and trade issues in order the global market place. Therefore, we provide the following services and resources pertaining to competitive in the global market place. Therefore, we provide the Provide assistance with tax, utility, infrastructure and training incentives for expanding ind following services• and resources pertaining to these issues:
•
Export Sales
No Exports 35% Stable 35% Increasing 30%
• Provide grant exploration and support for industries considering expansion. • Host the North Alabama International Trade Association’s (NAITA) annual Trade Tour for M Provide assistance• with tax, utility, infrastructure and training incentives for Partner with the Alabama Development Office (ADO) and NAITA, when importing and exp expanding industries. • Mallard‐Fox Creek Industrial Park is a part of General Purpose Zone #83 and is considered industries a number of shipping and customs‐related advantages. 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 #83 and is considered a U.S. Customs Port of Entry, offering resident industries a number of shipping and customs-related advantages.
workforce Evaluation
Workforce Evaluation Comparison
A skilled workforce is imperative to the success of any business community. Changes in workforce ratings have been slight over the past few years and employment needs have remained fairly stable. Yet many still cite difficulty finding technicians, skilled trades, industrial maintenance, machining and engineering talent. A study done in the later part of 2010 echoed these results citing that in the next 5-10 years, many companies are worried about being able to find this talent. Almost 1000 openings were anticipated in just these fields alone. Efforts are underway to combat this trend, particularly the Career Coaches program which seeks to educate high school and middle school students about in-demand jobs in the area.
7.00 6.00 5.00
6.09
5.61 5.03
5.33
5.53 5.47
5.23 4.56
4.83
5.91 5.33
5.74
4.00
2009 2010
3.00
2011
2.00 1.00 0.00
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. 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 6200 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.
Availability
Quality
Stability
Productivity
Industries were asked to rate different areas of the workforce on a scale of 1 (low) to 7 (high).
Employment Needs Comparison 80%
75% 75%
70%
The Workforce Development Resource Guide and Matrix can also be downloaded from the site, which will be updated this fall. Several new service providers will be added to the Guide and Matrix. The Guide and Matrix pinpoint where industries can go to receive workforce development help through various local providers.
66%
WORKFORCE EVALUATION
60% 50% 2009
40%
2010 2011
30%
25%
22%
19%
Volume 4, November 2011
20%
5
12% 10% 0%
Industries were asked to rate different areas of the workforce on a scale of 1 (low) to 7 (high).
Increasing
Stable
3%
3%
Decreasing
No Response
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 Electrical Cooperative, Decatur Utilities and Hartselle Utilities. Industries were asked to rate each utility service on a scale of 1 (low) to 7 (high). The spring storms and outages as well as increased electric costs due to rising fuel costs and other considerations impacted electric ratings this year. In addition, internet connectivity issues were noted in terms of competitiveness of service offerings. MCEDA will continue to foster strong relationships with all utility providers in order to meet the needs of existing industry.
Utility Comparison 7
6.6
6.39
6
5.91
6.00
6.16
5.94
6.04
6.5 5.97 6.00
6.06
6.03
5.94 5.67
5.66
5.67
5.92
5.38
6.16 5.89 5.54
5
2009
4
2010
Volume 4, November 2011
UTILITY evaluation
2011
6
3
2
1
Â
Water
Sewer
Â
Natural Gas
Electric
Telecom
Cellular
Internet (Speed and Access)
community evaluation community
strengths
Morgan County’s prime location, business climate, infrastructure, and workforce and labor market attributes were key strengths noted this year. Tax rates remain low, the industrial base is strong, and the work ethic of the labor force provides competitive advantagesCommunity Evaluation for businesses. Morgan County’s prime location, business climate, infrastructure, and workforce and labor market attributes were key strengths noted this year.
Companies were asked to rate the quality of 23 community services from a business perspective on a scale of 1 (low) to 7 (high). Tax rates remain low, the industrial base is strong, and the work ethic of the labor force provides competitive advantages for businesses. All community service ratings remained above the midpoint. 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
Workforce/Labor Market Attributes 30%
Business Climate Positive 42% Location (Including Accessibility to Customers & Suppliers) 9%
Volume 3, November 2010
community evaluation
Transportation System/Infrastructure 18%
7
2011 Community Service Ratings 5.83
Air Cargo Service
4.73
Airline Passenger Service
5.89
Ambulance Paramedic Service
6.00
Chamber of Commerce
5.14
Child Care Services
5.60
Colleges and Universities
5.78
Community Planning
5.29
Community Services
6.17
County Services
6.21
Economic Development
6.37
Fire Protection
5.57
Healthcare Services
5.50
Highways
5.27
K-12 Schools
5.86
Police Protection
5.57
Property Tax Assessment
4.67
Public Transportation
5.83
Regulatory Enforcement
5.38
Streets and Roads
5.90
Tech/Community College
4.87
Traffic Control
5.79
Trucking
5.82
Zoning and Building Permitting 0.00
1.00
2.00
Volume 2, November 2009
community services evaluation
8
3.00
4.00
5.00
6.00
7.00
Average Rating
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 2009
5.88 5.72 6.17 5.92 5.00 6.16 5.03 5.03 5.83 6.43 6.48 5.38 5.72 5.67 5.93 5.08 4.89 5.71 5.50 6.04 4.94 5.94 5.00
Average 2010
5.62 4.79 5.90 5.65 4.71 6.06 5.76 4.84 5.00 5.93 6.21 5.47 5.50 5.58 5.80 4.93 4.00 5.50 4.65 6.08 4.97 5.53 4.18
Average 2011
5.83 4.73 5.89 6.00 5.14 5.60 5.78 5.29 6.17 6.21 6.37 5.57 5.50 5.27 5.86 5.57 4.67 5.83 5.38 5.90 4.87 5.79 5.82
The majority of community service ratings have rebounded this year. MCEDA monitors all of these ratings and responds appropriately to ensure quality services are provided to our industrial sector. Continuous improvement is the goal of this ongoing process.
The majority of community service ratings have rebounded this year. MCEDA monitors all of these ratings and responds appropriately to ensure
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