Herman TinsleySenior Project Manager, Economic Development

Mobile Area Chamber of Commerce

PROJECT MANAGEMENT

INSTITUTE MEETING

JUNE 27, 2013

MOVING MOBILE FORWARD

MOBILE AREA CHAMBER’S ECONOMIC DEVELOPMENT STRUCTURE

Business Retention

and Expansion

Job Creation and Preservation

Recruitment

MOBILE AREA CHAMBER’S ECONOMIC DEVELOPMENT STRUCTURE

Business Retention

and Expansion

Workforce Developmen

t

Job Creation and Preservation

Recruitment

► AIDT► Aviation College of Mobile► College of Engineering, University of South Alabama► Southwest Alabama Workforce Development Council► Mobile Works Inc.► Career-tech training► Vocational training starting in high-school

WORKFORCE DEVELOPMENT

MOBILE AREA CHAMBER’S ECONOMIC DEVELOPMENT STRUCTURE

Business Retention

and Expansion

Workforce Developmen

t

International Trade

Job Creation and Preservation

Recruitment

INTERNATIONAL TRADE► Export sales from trade missions in past seven years

exceed $212 million with the creation of 3822 jobs► 2013 Trade missions to Norway & Sweden, China &

South Korea, Taiwan

MOBILE AREA CHAMBER’S ECONOMIC DEVELOPMENT STRUCTURE

Job Creation and Preservation

Recruitment

RECRUITMENTCandidate Locations Define Search Region

-Center-of-Market Analysis

Cost Modeling / Incentives

Regional Screening- Project Criteria

RFP & Proposal Screening

Risk Analysis

Site Visits / Comparative Assessment

Site Decision Source: McCallum Sweeney

Consulting, Courtesy of Ms. Jeanette

Goldsmith

HOW ARE PROSPECTS/CLIENTS GENERATED?

Site Selection Consultants Utilities State Agencies Local & Regional ED Organizations Construction, Architects, Engineers, Contractors County, City, Public Authorities Real Estate Brokers Rail Bankers, Financial Institutions Universities Existing Industries Attorneys, Accountants Trade Show Events (Domestic & International) Referrals Investment Missions (Domestic & International) Internet Others

WHAT ARE THE TOP SITE SELECTION CRITERIA AS CITED BY CLIENTS?

1 Highway accessibility (also, rail and water)

2 Labor costs

3 Occupancy and construction costs

4 Tax exemptions

5 Energy availability and costs

6 Availability of Skilled labor

7 State and local incentives

8 Corporate tax rate

9 Low union profile

10 Available land

11 Availability of buildings

12 Proximity to major markets

13 Right-to-work stateSource: Area Development magazine, 23nd Annual Corporate Survey (Dec/Jan 09)

TOP SITE SELECTION CRITERIA (CONTINUED)

14 Environmental regulations

15 Expedited or "fast-track" permitting

16 Proximity to suppliers

17 Availability of long-term financing

18 Availability of unskilled labor

19 Training programs

20 Raw materials availability

21 Availability of advanced ICT services

22 Accessibility to major airport

23 Proximity to technical university

24 Railroad service

25 Waterway or ocean port accessibilitySource: Area Development magazine, 23nd Annual Corporate Survey (Dec/Jan 09)

WHAT ARE THE TOP QUALITY OF LIFE FACTORS INDICATED AS IMPORTANT BY

CLIENTS?

1 Low crime rate

2 Healthcare facilities

3 Housing costs

4 Housing availability

5 Ratings of public schools

6 Climate

7 Colleges and universities in area

8 Recreational opportunities

9 Cultural opportunities

Source: Area Development magazine, 23nd Annual Corporate Survey (Dec/Jan 09)

► Excellent Logistics► Favorable Labor Environment –

RIGHT TO WORK STATE► Low cost of living► Low cost of doing business► Competitive incentives

ADVANTAGES

EXCELLENT LOGISTICS

DRIVE TIME FROM MOBILE, AL

Kansas City

Columbus

DetroitChicago

St. Louis

Bowling Green

Raleigh

Mobile

One-Day DriveTwo-Day Drive

RAILROADS SERVING MOBILE

Norfolk Southern

CSX / Union PacificCanadian National / IC

Burlington Northern / SF

Kansas City Southern MobileCentral Gulf Railroad

INLAND WATERWAY

ACCESS

• Tennessee River• Tennessee-Tombigbee • Warrior-Tombigbee• Gulf Intracoastal

Waterway

Alabama’s Seaport Provides Access to Nearly 15,000 Miles of Navigable Inland Waterways Serving Great Lakes, Ohio, Upper Mississippi and Tennessee Valley Ports

TOP MANUFACTURERSCompany Total Employees

Austal USA 2,800

ThyssenKrupp Steel USA 1,550

ST Aerospace Mobile 1,500

Outokumpu 705

Goodrich Aerospace (Baldwin County) 700

BAE Systems Southeast 700

Kimberly Clark 700

Evonik 644

SSAB Americas 500

Continental Motors 450

BASF Corporation 387

FOREIGN BASED INVESTMENTS IN THE MOBILE AREACountry of Origin Company Product

Australia Austal USA Aluminum Ships/Ferries

Austria Lenzing Fibers Inc. Tencel Fibers

Belgium Huntsman Advanced Materials Americas Inc. Specialty Chemicals

Canada IB Nitrogen Inc. Fertilizer

England INEOS Phenol Phenol & Acetone

England Shell Chemical LP Petroleum Refining

England Tate & Lyle Splenda Production

England BAE Systems Southeast Shipyards Alabama Ship Repair

Finland Kemira Water Solutions, Inc. Water Treatment

Finland Outokumpu Stainless Steel Processing

France Airbus North America Engineering Aerospace Industries

France Arkema, Inc. Industrial Chemicals (Durastrength 200)

France Global Tel Link Corporation Public Payphones, Equipment

France Technip Offshore Flexible Pipe Reel Base

Germany Berg Steel Pipe Corporation Iron and Steel Pipe

Germany BASF Chemicals

Germany Evonik Degussa Corporation Aerosil, Methionine, Hydrogen Peroxide, Hydrogen Cyanide, Sodium Cyanide

FOREIGN BASED INVESTMENTS IN THE MOBILE AREA (CONTINUED)

Country of Origin Company Product

Germany ThyssenKrupp Steel USA LLC Carbon Steel Processing

The Netherlands Akzo Nobel Functional Chemicals LLC Sulfur Chlorides

The Netherlands Shell Offshore Inc. Natural Gas Processing, Sulfur

Japan Jamco America Aerospace

Japan Master Halco Chain Link Fencing

Japan Mitsubishi Polycrystalline America Corporation High Purity Polycrystalline Silicon

Japan Plasmine Technology, Inc. Paper sizing Products

Japan Ricoh Business Solutions Copiers, Faxes, and Documentation Machines

Korea Glovis Alabama LLC Logistics Services

Norway Aker Solutions Undersea Umbilical Cables

Scotland Energy Cranes LLC Offshore Marine Cranes

Singapore ST Aerospace Mobile, Inc. Aircraft Maintenance, Repair, & Modification

South Africa Barloworld Handling-Mobile Branch Hyster Forklift Sales, Parts, Rental

Spain Airbus Military North America Inc. Military Transport, Sales & Service

Sweden SSAB Americas Steel Manufacturers

Sweden Quincy Compressors Compressors

Switzerland Holcim (US) Inc. Portland & Masonry Cements

► Consultant events – SEDC “Meet the Consultants” in May, direct visits with consultants in major U.S. cities (Atlanta, Chicago, NYC, Houston, L.A., others)

► Trade shows – main focus on aerospace industry, four major air shows targeted in 2012 and others in other industry sectors, partner with MAA on aerospace/aviation marketing efforts, new focus: oil and gas industry

► Participate in state-wide organizations and events: EDAA, AAMA, AAIA, AGP

► Existing industry relationships: visit headquarter facilities, work with our companies on suppliers and customers

► Industrial Development Board of the City of Mobile and Industrial Development Authority of Mobile County

► Mobile Commerce Park, owned and maintained by Industrial Park Board of Mobile

MISCELLANEOUS RECRUITMENT ITEMS

ON THE EXAMPLE OF PROJECT COMPASS & NEW STAR

August 2010

PROJECT COMPASS + NEW STAR SPECIFICATIONS

►Huge►Facility: $3.7 billion (now at $5.2 billion); 3,600 acres;

7 million sq. ft.►2,700+ employees; 75% semi or high skill►Annual Steel Production:

►Carbon 4.1 million metric tons flat carbon steel►Stainless 1 million metric tons, melt shop rolling and coating

► Initial RFI - Feb 24, 2006 - C&W► Site Visits - Apr 4 & 5► +New Star; Finalist AL, LA & ARK - Summer► RFP Due - Sep 29► Presentation in Germany - Oct► Counter RFP - Jan 2007► Trip Germany - Feb, AL & LA;► Gov, Speaker, Lt. Gov, ALDOT, ADO Dir, APC CEO► MOU – March in Atlanta► Final & Best Offer – Apr in NY► ThyssenKrupp Announces – May 11, 2007 5:40 a.m.

PROJECT COMPASS + NEW STAR TIMELINE

ALABAMA ADVANTAGES Port Solution – Carbon Steel Slabs NS -Rail 70% Outbound Customers Electricity Competitive Political Stability Less Complex Site Development Lower Long Term Operating Costs Proven Track Record with “Can Do Attitude”

ON THE HUNT…

C&W: TEAM WORK - THE ECONOMIC DEVELOPMENT DIFFERENTIATOR

►Alabama assembled a large, aligned team►ED team performance had material impacts►Teams differentiated themselves through consistent,

exceptional teamwork – C&W and TK noticed►This project performance can be a role model for the

next “mega project”

C&W: KEY TEAM TRAITS

Professionalism and problem solving, “can do attitude” Consistent speed of execution Necessary government involvement across agencies and

jurisdictions from local, state and federal levels Included third-party expertise (legal, engineering, etc.) aligned

with project Included all key service providers for utilities and

transportation High performing entities of the team prop up the lesser

performers Defined leadership and communication channels

Team Alabama!Team Alabama!

…and many more

SECRET TO OUR SUCCESS

CHANGES OVER THE PAST 10 YEARS

Median Household Income 2002-2012

$34,062 $41,252

• $600 million investment, 1000 jobs• A320 family of passenger aircraft• Total annual economic impact on the State’s economy will

amount to $409 million of additional output (GDP), $172 million of earnings and a total of 4700 FTE employees

• The total economic impact on Mobile County will be $348 million of output gains, $145 million of earnings influx and a total of 3,900 FTE increase in employment base of the County

(State multipliers are estimated to be 2.1, 2.8, and 4.7, for output, earnings and employment, and the County’s multipliers are reported to be 1.8, 2.4, and 3.9)