Insights from the Synchronist

Reporting System®

Volume 4, November 2011

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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 expand within the next three years and three-fourths 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.

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 2012Thank 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

 PAGE 1 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 expand within the next three years and three‐fourths 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.   

 

0 2 4 6 8 10

Workforce Training

Employment Growth

Awards/Recognition

Market or Facility Expansion

Business Growth/Sales Increase

Overcoming Business Challenges

Improvements Implemented

Number of Responses

Greatest Achievements

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

   

0 2 4 6 8 10 12 14

1-25

26-50

51-75

76+

Number of Responses

Years

Years in Business

 

 

Company Ownership

Public 62%Private/Family Owned 35%Non-Profit 3%

 

 

Business SectorIndustrial Goods 54%

Durable Goods Producer 13%

Consumer Goods Producer 18%

Advanced Manufacturing 4%

Aeronautics and Defense 4%

Building & Construction 4%

 

 

 

 

   

 

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 union activity has not increased in Morgan County. 

 

0 2 4 6 8 10

1-25

26-50

51-100

101-250

251+

Number of Companies

Number of Employees

   

0 2 4 6 8 10 12 14

1-25

26-50

51-75

76+

Number of Responses

Years

Years in Business

 

 

Company Ownership

Public 62%Private/Family Owned 35%Non-Profit 3%

 

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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. Certain graphs highlight comparison between previous Business Broadcast cycle’s information. Improvements in company sales and market share (no companies saw a decrease in market share this year) from 2009 and 2010 are positive indicators of a stronger economy. The amount of maturing and declining product life cycles from years past also point to positive economic improvements.

product development, Industy & Market Changes

Product Development, Industry and Market Changes 

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.    

Certain graphs highlight comparison between previous Business Broadcast cycle’s information.  Improvements in company sales and market share (no companies saw a decrease in market share this year) from 2009 and 2010 are positive indicators of a stronger economy.  The amount of maturing and declining product life cycles from years past also point to positive economic improvements.  

 

16%

26%

58%

36%

28% 28%

7%

44%

52%

4%

0%

10%

20%

30%

40%

50%

60%

70%

Increasing Stable Decreasing No Response

Company Sales Comparison

200920102011

 

 

 

 

 

 

27%

63%

10%

43%

36%

14%

7%

42%

58%

0%

10%

20%

30%

40%

50%

60%

70%

Increasing Stable Decreasing No Response

Market Share Comparison

200920102011

 

 

 

Yes 75%

No25%

New Products Anticipated Within 2 Years

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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 the interview process this year were sent information on tax abatements and incentives for expanding industries.The exports sales graph reflects companies who export finished goods directly (as opposed to through a distributor) and imports reflect only raw materials imports.

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:

expansion & Market Information

• 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 #83 and

is considered a U.S. Customs Port of Entry, offering resident industries a number of shipping and customs-related advantages.

Expansion and 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 the interview process this year were sent information on tax abatements and incentives for expanding industries. 

The exports sales graph reflects companies who export finished goods directly (as opposed to through a distributor) and imports reflect only raw materials imports. 

 

29%

71%

47% 47%

6%

33%

67%

0%

10%

20%

30%

40%

50%

60%

70%

80%

No Yes No Response

Expansion Plans Comparison

200920102011

 

 

 

 

Export Sales

No Exports 35%Stable 35%Increasing 30%

Imports

No Imports 86%Decreasing 0%Stable 16%Increasing 0%No Response 16%

 

 

 

 

Primary Markets

Local 4%Regional 35%National 26%International 35%

   

 

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: 

• 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 #83 and is considered a U.S. Customs Port of Entry, offering resident industries a number of shipping and customs‐related advantages. 

   

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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.

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.

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.

workforce Evaluation

 

Industries were asked to rate different areas of the workforce on a scale of 1 (low) to 7 (high).  

5.615.23

5.53 5.335.03

4.56

5.475.91

5.334.83

6.095.74

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

Availability Quality Stability Productivity

Workforce Evaluation Comparison

200920102011

 

12%

66%

22%19%

75%

3% 3%

25%

75%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Increasing Stable Decreasing No Response

Employment Needs Comparison

200920102011

 

 

 

 

 

Industries were asked to rate different areas of the workforce on a scale of 1 (low) to 7 (high).  

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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 Evaluation

   

6.396.16

6.6

6.06 6.03

6.5

6.165.91 5.94 5.97

5.665.94

5.675.896.00 6.04 6.00

5.385.67

5.92

5.54

1

2

3

4

5

6

7

Water Sewer Natural Gas Electric Telecom Cellular Internet (Speed and Access)

Utility Comparison

200920102011

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community evaluationcommunity 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 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 Evaluation 

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 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

Workforce/Labor Market Attributes 30%

Transportation System/Infrastructure 18%

Business Climate Positive 42%

Location (Including Accessibility to Customers & Suppliers) 9%

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0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00

Zoning and Building PermittingTrucking

Traffic ControlTech/Community College

Streets and Roads Regulatory Enforcement

Public TransportationProperty Tax Assessment

Police ProtectionK-12 Schools

HighwaysHealthcare Services

Fire ProtectionEconomic Development

County ServicesCommunity Services

Community PlanningColleges and Universities

Child Care Services Chamber of Commerce

Ambulance Paramedic ServiceAirline Passenger Service

Air Cargo Service

5.825.79

4.875.90

5.385.83

4.675.57

5.865.27

5.505.57

6.376.216.17

5.295.78

5.605.14

6.005.89

4.735.83

Average Rating

2011 Community Service Ratings

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.

 

Community Service Ratings Average 2009

Average 2010

Average 2011

Air Cargo Service 5.88 5.62 5.83 Airline Passenger Service 5.72 4.79 4.73 Ambulance Paramedic Service 6.17 5.90 5.89 Chamber of Commerce 5.92 5.65 6.00 Child Care Services 5.00 4.71 5.14 Colleges and Universities 6.16 6.06 5.60 Community Planning 5.03 5.76 5.78 Community Services 5.03 4.84 5.29 County Services 5.83 5.00 6.17 Economic Development 6.43 5.93 6.21 Fire Protection 6.48 6.21 6.37 Healthcare Services 5.38 5.47 5.57 Highways 5.72 5.50 5.50 K-12 Schools 5.67 5.58 5.27 Police Protection 5.93 5.80 5.86 Property Tax Assessment 5.08 4.93 5.57 Public Transportation 4.89 4.00 4.67 Regulatory Enforcement 5.71 5.50 5.83 Streets and Roads 5.50 4.65 5.38 Tech/Community College 6.04 6.08 5.90 Traffic Control 4.94 4.97 4.87 Trucking 5.94 5.53 5.79 Zoning and Building Permitting 5.00 4.18 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. 

300 market Street ne, Suite 2decatur, alabama 35601

phone: (256) 353-1213FaX: (256) 353-0407

email: mceda@mceda.org

www.mceda.org

MORGAN COUNTY, ALABAMAECONOMIC DEVELOPMENT ASSOCIATION