2009 Broadcast Broch

Insights from the Synchronist Reporting System®

Volume 2, November 2009

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The past year has been challenging for our national economy and the industries in Morgan County. However, opportunities arise for improving business processes and services and for MCEDA and our community partners to find creative ways to better serve our industrial customers. 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 questions and highlights the resilience and strength of the companies in Morgan County.

The 2009 Business Broadcast contains data gathered from a cross section of 32 companies in Morgan County and examines where improved business processes can and are taking place. The results contained in these pages present a picture of the state of our existing industries, which are vital to the success of our community.

The current publication differs from the previous publication in number of companies surveyed and length of time the data was gathered. The previous publication surveyed 80+ companies over more than a two year period. Because MCEDA is focused on existing industry support, we believe an annual publication during a more concise data gathering period reflects a more accurate business picture and aids us in making better decisions for our industries.

Since the 2008 publication:MCEDA in partnership with Tennessee Valley Authority and Alabama Technology Network launched a pilot program, Eukera! • Winning Ways, to combat market growth issues highlighted in our previous publication (over 50% of our industries stated that they were operating in a mature or declining market). We look forward to expanding this program to more companies in 2010. Areas in the community service evaluation that received below average ratings or had ratings below the national average were • targeted for consultation and improvement. Stakeholders in these areas were gathered to address concerns and pinpoint specific action items. Every entity that was below average in ratings has improved their ratings this year.MCEDA’s previous Business Broadcast won the Southern Economic Development Council’s Merit Communications Award in the • Medium Division at their summer conference. MCEDA was the only economic development office in the State of Alabama to be recognized.In partnership with the Decatur-Morgan County Chamber of Commerce’s Workforce Development Coalition, strategic workforce • development actions have taken shape. This effort has developed out of a concern for the lack of collaboration in workforce development throughout the county.

Looking toward the future is the ultimate goal of this process. Based on insights gained from this year’s report MCEDA is working on:

Updating and improving the annual Industrial Wage Survey• Funding for internet connectivity in rural areas• Monitoring legislation that can impact our industries and • addressing concerns with our legislative delegationsWorking with TVA to explain and provide additional expansion • assistance through the Valley Investment Initiative (See Expansion and Market Information pg. 5)Strategic workforce development actions and the launch • of Career Pathway initiative and website (See Workforce Evaluation pg. 6) Commending and thanking community service areas who • are meeting the needs of our industrial communityContinuing dialogue and actions to improve community • service areas

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.

Business Broadcast

0 2 4 6 8 10 12

Production Improvement/Innovation

Financial Objectives Met

Employment Growth

Awards/Recognition

Safety Record

Market Expansion or Adjustments

Facility Updates/Expansion

Stability

Business Growth/Sales Increase

Overcoming Business Challenges

Greatest Achievements

Number of Responses

Morgan County has a diverse array of industrial companies. The followingdisplays information on the types of businesses surveyed.

respondentDemographics

PoPulatioN GRowth2000 Census 111,064 2000-2008 5.03%2008 Estimate 116,653 2008-2013 3.22%2013 Projection 120,411

2008 Estimate, Average Household Income $53,4112008 Estimate, Number of Businesses 4,5912008 Estimate, Number of Employees 60,1612008 Estimate, Blue Collar Workforce 39.68%2008 Estimate, White Collar Workforce 50.93%

countyDemographics

Of companies surveyed, the vast majority

were union free. This is reflective of the Morgan

County labor environment as a whole.

0 2 4 6 8 10 12 14 16

1-25

26-50

51-75

76-100

Number of Responses

Years

Years in Business

Company Ownership

Private/Family Owned 44%

Public 37%

Foreign Owned 16%

Non-Profit 3%

Business Sector

Industrial Goods 60%

Durable Goods Producer 17%

Consumer Goods Producer 10%

Communications 7%

Aeronautics and Defense 3%

Building & Construction 3%

0 2 4 6 8 10 12 14 16 18

1-100

101-250

251-500

501-750

1001+

Number of Companies

Number of Employees

Company Ownership

Private/Family Owned 44%

Public 37%

Foreign Owned 16%

Non-Profit 3%

Business Sector

Industrial Goods 60%

Durable Goods Producer 17%

Consumer Goods Producer 10%

Communications 7%

Aeronautics and Defense 3%

Building & Construction 3%

Union Presence

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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 comparisons between previous Business Broadcast cycle’s information. It is evident the economy has impacted the business market and sales for area companies.

One area of concern cited by MCEDA during the last data gathering process was the number of companies operating in a mature or declining life cycle. Because of this, MCEDA partnered with the Alabama Technology Network and Tennessee Valley Authority to pilot the Eureka! Growth Strategies program for one area industry. MCEDA will continue to foster this program in 2010. If you are interested in learning more about the Eureka! Program and how it can help you expand and grow your business, please contact the MCEDA office.

Due to the shift in legislative concerns impacting business, including the Employee Free Choice Act and Cap and Trade Legislation, among others, MCEDA has worked to play an active role in informing our local, state and federal delegations about concerns industries have expressed throughout the data gathering process. We will continue to monitor legislation that could have an impact on our area industries and respond accordingly.

product development,Industy &Market Changes

Market Share

Increasing 27%

Stable 63%

Decreasing 10%

Yes77%

No23%

New Products Introduced in Last 5 Years

Market Share

Increasing 27%

Stable 63%

Decreasing 10%

Yes77%

No23%


Company Sales

Increasing 16%

Stable 26%

Decreasing 58%

Market Share

Increasing 27%

Stable 63%

Decreasing 10%

Yes77%

No23%


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product development,Industy &Market Changes

Yes 63%

No37%

New Products Anticipated Within 2 Years

0%

10%

20%

30%

40%

50%

60%

Emerging Growing Maturing Declining No Response

Life Cycle Comparison

2008

2009

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Yes No No Response

Do you anticipate legislative changes that will adversely

impact your business?

2008

2009

Industry Production

Supply greater than Demand 68%

Balanced 25%

Demand greater than Supply 7%

New Products Introduced inLast 5 Years

New Products AnticipatedWithin 2 Years

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Despite declining sales amidst the economic situation, companies are looking favorably towards the future. Of companies surveyed, 71% plan to expand their local operations within three years. Also, many companies are expanding their market reach through exports to operate in today’s global economy.

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 Foreign Trade Zone no. 83 and a • U.S. Customs Port of Entry, offering resident industries a number of shipping and customs-related advantages.

Export Sales

No Exports 39%

Decreasing 10%

Stable 29%

Increasing 22%

Imports*

No Imports 45%

Decreasing 3%

Stable 42%

Increasing 10%

*As a percentage of components

Export Sales

No Exports 39%

Decreasing 10%

Stable 29%

Increasing 22%

Imports*

No Imports 45%

Decreasing 3%

Stable 42%

Increasing 10%

*As a percentage of components

Primary Markets

Local 12%

Regional 19%

National 38%

International 3%

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 Subzone of Foreign Trade Zone no. 83 and a U.S. Customs Port of Entry, offering resident industries a number of shipping and customs-related advantages.

Does your company plan toexpand in the next 3 years?

Primary Markets

Export Sales

Imports*

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A well-educated and highly skilled workforce is imperative to the success of any business community. Due to economic conditions, changes in ratings for workforce attributes are evident through the comparison graph seen to the right. However, many companies still cite difficulty finding certain skilled positions as seen in the positions difficult to fill chart. On a scale of 1 (low) to 7 (high), ratings have improved from last year.

Because workforce development is a vital component of our industries’ and citizens’ success, a strategic workforce development plan and effort has been launched. The Decatur-Morgan County Chamber of Commerce Workforce Development Coalition’s purpose is to provide the framework for a Career Pathway for every citizen to meet the needs of current and future businesses in Morgan County. In partnership with the Coalition, Career Pathway has been launched and the Workforce Development Resource Guide and Matrix have been published. These publications can be viewed and downloaded at mceda.org or dcc.org and provide a comprehensive listing of workforce development resources in our area. The Coalition and MCEDA are working to ensure that there is a strategy, vision, and communication plan guiding our workforce development efforts. The CareerPathway.info website will be launched in December 2009.

MCEDA also offers free Leadership Training Classes through AIDT two or three times a year. For more information about enrolling participants in this class, please contact Mary Ila Ward at [email protected].

WorkforceEvaluation

4.24 4.454.81

5.585.615.23

5.53 5.33

0

1

2

3

4

5

6

Availability Quality Stability Productivity

Workforce Evaluation Comparison

2008

2009

0 1 2 3 4 5 6 7

Welders

Technicians

Other Skilled Production Labor

Industrial Maintenance

Scientific/Technical (other than engineers)

Machinists

Engineers

Number of Responses

Positions Difficult to Fill

Employment Needs

Increasing 12%

Stable 66%

Decreasing 22%

MCEDA also offers Free Leadership Training Classes through AIDT two or three times a year. For more information about enrolling participants in this class, please contact Mary Ila Ward at [email protected].

Employment Needs

Increasing 12%

Stable 66%

Decreasing 22%


Employment Needs

Increasing 12%

Stable 66%

Decreasing 22%


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community evaluationStrengths

Morgan County’s prime location, quality of life, and the strength of our workforce are consistently cited as strengths of the community. Extensive transportation systems including interstate, highway, waterway, and rail promote and support the business community.

Industry representatives cite low crime rates, recreational facilities and the friendliness of local citizens as quality of life issues that distinguish Morgan County as a thriving place to do business and live.

Key workforce and labor market attributes cited by companies executives were: the work ethic and skills of a strong industrial labor pool, low union activity, and competitive wages.

Community Strengths

Workforce/Labor Market Attributes 27%

Transportation System/Infrastructure 18%

Business Climate 14%

Quality of Life 15%

Location (IncludingAccessibility to Customers &Suppliers) 13%

Cost of Living/Doing Business 5%

Educational System 5%

Other* 3%

*Includes responses with a frequency of one or less

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Utility services and availability are vital to the operation of each business. Industries were asked to rate each utility service on a scale of 1 (low) to 7 (high). Consistently all services were 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.

TVA and participating TVA power distributors have launched a new program, Valley Investment Initiative, that provides economic development expansion incentives for existing customers.

Existing customers in targeted sectors whose facilities meet program qualifiers may be able to be evaluated for the • incentiveAward amounts are based on customer’s five year projections and actual performance in various categories.•

For more information and to see if you qualify for this program, please contact the MCEDA office.

UtilityEvaluation

6.266.01 5.88 5.86 5.82 5.68

6.166.6

6.06 6.03

6.56.16

1

2

3

4

5

6

7

Sewer Natural Gas Electric Telecom Cellular Internet (Speed and

Access)

Utility Comparison

2008

2009

community evaluation

MCEDA will continue to foster open dialogue with all of our community partners to ensure quality services are provided to our industrial sector. All areas that were targeted for improvement last year saw an increase in their average ratings. Continuous improvement is the goal of this ongoing process.

Zoning and Building Permitting

Trucking

Traffic Control

Tech/Community College

Streets and Roads

Regulatory Enforcement

Public Transportation

Property Tax Assessment

Police Protection

K-12 Schools

Highways

Healthcare Services

Fire Protection

Economic Development

County Services

Community Services

Community Planning

Colleges and Universities

Child Care Services

Chamber of Commerce

Ambulance Paramedic Service

Airline Passenger Service

Air Cargo Service

4.94

6.04

5.5

5.71

4.89

5.08

5.93

5.67

5.72

5.38

6.48

6.43

5.83

5.03

5.03

6.16

5

5.92

6.17

5.72

5.88

5

5.94

0 1 2 3 4 5 6 7

A R i

2009 Community Service Ratings

Community Service Ratings

Average 2008

Average 2009

Air Cargo Service 6.21 5.88 Airline Passenger Service 5.83 5.72 Ambulance Paramedic Service 6.47 6.17 Chamber of Commerce

5.98 5.92 Child Care Services 5.36

5.00

Colleges and Universities 6.35 6.16 Community Planning 4.20

5.03

Community Services 6.13

5.03 County Services 5.39

5.83

Economic Development 6.19

6.43 Fire Protection 6.43

6.48

Healthcare Services 5.22

5.38 Highways 5.44

5.72

K-12 Schools 5.84

5.67 Police Protection 6.07

5.93

Property Tax Assessment 5.62

5.08 Public Transportation 4.07

4.89

Regulatory Enforcement 5.69

5.71 Streets and Roads 5.11

5.5

Tech/Community College 6.05

6.04 Traffic Control 4.52

4.94

Trucking 6.27

5.94 Zoning and Building

Permitting 3.82

5.00

5.98 5.92

6.35 6.16

summary

Community Rating Comparison

2009 Community Service Ratings

300 market Street Ne, Suite 2decatur, alabama 35601

PhoNe: (256) 353-1213fax: (256) 353-0407

email: [email protected]

www.mceda.org

MORGAN COUNTY, ALABAMAECONOMIC DEVELOPMENT ASSOCIATION

2009 Broadcast Broch

Documents

Transcript of 2009 Broadcast Broch