1 year ago

Record year for foreign investment sparks growth in Alabama

With major new growth projects moving forward across Alabama, foreign direct investment continues to play a vital role in the state’s economy, building on a record total of foreign investment approaching $4.2 billion last year.These FDI projects represent major job-creation engines for many Alabama communities.

Last year, companies from 16 different countries launched projects with more than 7,500 new jobs. So far in 2019, FDI projects approaching $1 billion in value will bring another 3,300 jobs to the state, according to an Alabama Department of Commerce estimate.

In Enterprise, Tier 1 auto supplier Hwaseung Automotive Alabama (HSAA) in March announced plans to add 168 jobs to its Alabama operation through a $6 million expansion that represents Coffee County’s largest FDI project in four years.

HSAA, which launched its Alabama operation in 2003 with 20 employees, will have nearly 600 when the new hires are added, said Jonathan Tullos, executive director of the Wiregrass Economic Development Corp. Its last major expansion in Enterprise came in 2015.

HSAA, which produces weather-stripping and air conditioner hoses, serves Hyundai’s Montgomery assembly plant, along with Kia, Chrysler and General Motors. Its Alabama-made products are found in more than a dozen automobiles.

“Having a company like HSAA make an investment in Enterprise is a ringing endorsement of the quality of workforce and opportunities that exist in our area,” Tullos said.

“We have seen in the past that these investments can yield additional job-creation opportunities from other companies looking for a home.”

One example: Advanced Carrier Products, whose parent company is based in Germany, opened a manufacturing operation in Enterprise to supply metal inserts to HSAA.

FDI IMPACT

Similar stories have played out in a number of Alabama communities in recent years, particularly as growth in the state’s auto industry has intensified.

Select USA, a federal government program that facilitates foreign investment in the U.S., says the Alabama operations of foreign-owned companies employ 109,000 people in the state. Read a report.

Since 2013, FDI projects in Alabama have involved nearly $13 billion in new capital investment, generating almost 25,000 jobs, according to estimates from the Alabama Department of Commerce.

FDI typically accounts for 30 to 50 percent of new and expanding industry activity in the state each year, said Greg Canfield, secretary of the Alabama Department of Commerce.

“Clearly, this is a huge priority for us as a state, and we’re fortunate to have a diverse base of industries, along with a highly-skilled workforce, to attract and retain these commitments from global manufacturers year after year,” Secretary Canfield said.

Not all FDI flowing into Alabama is tied to the auto industry.

In fact, foreign investment recorded in 2018 originated from a diverse slate of sources in a variety of industries.

Major FDI projects now under way include French planemaker Airbus’ $264 million, 432-job expansion of its Mobile manufacturing plant, and the $101 million, 150-job expansion of the Calhoun County plant operated by Austria-based Kronospan, a leading manufacturer of wood-based panel products.

Other big projects were Haier U.S. Appliance Solutions Inc., part of a China-based conglomerate and parent company of GE Appliance, which announced a $115 million, 255-job expansion of its Decatur refrigerator plant.

In Mobile, Swedish steelmaker SSAB is investing $100 million, adding 60 jobs and relocating its North American headquarters from suburban Chicago.

FDI HORSEPOWER

Alabama has seen significant increases in FDI in the automotive sector over the past 25 years, thanks to the growing operations of foreign automakers Mercedes-Benz, Honda and Hyundai, and their sprawling supplier networks.

Toyota has also played a major role. Earlier this year, Toyota announced a $288 million expansion at its Huntsville engine plant, where it will add two new production lines and 450 workers. The project will push the investment in the plant to $1.2 billion and its workforce for more than 1,800.

Meanwhile, just miles away, construction on the $1.6 billion Mazda Toyota Manufacturing USA joint venture auto assembly plant is well under way. After production begins in 2021, the facility will have up to 4,000 workers.

Already, suppliers have begun circling the plant, bringing $380 million in new investment and nearly 1,500 jobs. More announcements are expected in 2019.

For Alabama, 2018 was a banner year for automotive FDI.

In addition to the new Mazda Toyota factory, other major projects included Mercedes-Benz’s new $268 million, 325-job EV battery plant in Bibb County, along with a $495.5 million expansion at the automaker’s Tuscaloosa County campus.

Elsewhere in the auto industry, Hyundai constructed a $388 million facility for engine manufacturing operations in Montgomery, and Honda announced plans to spend $55 million to improve weld operations and add more than 50,000 square feet at its Talladega County factory.

According to Select USA data, Alabama has attracted 114 auto-related FDI projects.

TARGETING INVESTMENT

Like other areas of the state, Tullos said Enterprise and Coffee County are making moves to position their region for future investment opportunities by focusing on education and workforce development.

“Our workforce is anchored by one of the best K-12 school systems in the state of Alabama as well as the efforts of Enterprise State Community College President Matt Rodgers, who recently launched a mechatronics program to support companies like HSAA,” he said.

The mechatronics program, offered at the Alabama Aviation College in Ozark beginning this fall, will train workers for high-demand industrial automation careers that focus on electrical, mechanical and computer engineering.

There are similar programs in place to assist Mercedes and Toyota. In addition, Alabama has rolled out initiatives including Success Plus and Apprenticeship Alabama that are designed to fill the pipeline of skilled workers needed in the future.

(Courtesy of Made in Alabama)

12 hours ago

South Alabama, UAB to face off in nationally televised Thursday night game

The University of South Alabama Jaguars will host the University of Alabama at Birmingham (UAB) Blazers on Thursday night at 6:30 in each team’s third game of the 2020 college football season.

This will be the second-ever game at the Jaguars’ new Hancock Whitney Stadium in Mobile.

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Both teams go into the contest 1-1.

You can watch the game on television via ESPN or online via the network’s website.

The matchup will be broadcast locally on the USA Football Radio Network: flagship 96.1 FM/99.5 FM “The Jag” in Mobile. Live audio will also be available online from anywhere here.

UAB won the first and only previous meeting in history between the Yellowhammer State programs: a 35-3 triumph last year in Birmingham.

South Alabama is still seeking their first-ever win at Hancock Whitney Stadium after losing a tight contest to Tulane last time out.

On Saturday, college football fans in the state will also get to see SEC play return, including the University of Alabama Crimson Tide and Auburn Tigers.

Sean Ross is the editor of Yellowhammer News. You can follow him on Twitter @sean_yhn

12 hours ago

Palmer introduces bill allowing flexibility for how states spend leftover CARES Act money

Congressman Gary Palmer (AL-06) on Wednesday introduced the Coronavirus Relief Fund Flexibility Act (H.R. 8360).

This legislation would allow states to determine how to spend remaining respective relief funds that were issued by the federal government under the CARES Act.

States and localities were provided $150 billion total through the relief fund for mitigation and response to COVID-19, and it is now estimated that approximately $80 billion remains unspent still. Right now, if those funds are unspent at the end of the calendar year, they revert to the federal government.

Palmer’s H.R. 8360 would allow state legislatures to determine how to utilize these remaining funds, with measures to encourage infrastructure development and future coronavirus preparedness.

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“The initial legislation was perhaps too restrictive,” Palmer said in a statement.

“What we hope to do with this legislation is not only create some flexibility to prevent waste but to incentivize states to use the funds towards much needed infrastructure,” he explained. “The one-size-fits-all nature of the underlying measure fails to consider how each state is responding to the pandemic differently, so this legislation would put the spending decisions in the hands of those on the ground in the states who have a better understanding of their specific needs. If we pass this bill, we will give states a much needed boost for infrastructure and an extended period to determine how to address continued COVID-19 related expenses, instead of rushing to spend the funds with a looming deadline.”

According to the Central Alabama congressman’s office, the legislation would specifically prohibit funds from being spent on government employee bonuses, lobbying expenses or budget shortfalls predating the pandemic. H.R. 8360 would further provide a 50% match for funds spent on infrastructure projects begun in the next year and require states to hold 25% of their remaining relief funds in trust for future COVID-19 expenses.

Palmer has 14 co-sponsors listed on the legislation as of Thursday at 4:45 p.m. CT. All co-sponsors are Republicans.

Sean Ross is the editor of Yellowhammer News. You can follow him on Twitter @sean_yhn

12 hours ago

House of A.D. King added to African American Civil Rights Network by Sec. of Interior David Bernhardt

BIRMINGHAM — On May 11, 1963, the house in Birmingham where Reverend Alfred Daniel Williams “A.D.” King lay asleep with his family was bombed by someone angry at King’s leadership in the civil rights movement.

Fifty-seven years later, U.S. Secretary of the Interior David Bernhardt traveled to that same house so he could personally oversee its addition to the African American Civil Rights Network.

Though not as famous as his elder brother, Martin Luther King, Jr., the younger King was a prominent civil rights leader in his own right. He led the Birmingham Campaign while serving as reverend of the First Street Baptist church in the Ensley neighborhood of the Magic City.

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According to the King Institute at Stanford, angry protesters filled the streets that May evening after learning of the failed assassination attempt at the faith leader’s home.

A.D. King went out to join the protesters, who were on the verge of descending into riots.

“My friends, we have had enough problems tonight. If you’re going to kill someone, then kill me. … Stand up for your rights, but with nonviolence,” he told the crowd, which reportedly dissipated soon after.

King tragically drowned at age 38 in 1969 but his widow, Naomi Ruth Barber King, and daughter, Dr. Alveda King, were both on hand Thursday for the addition of the A.D. King House to the African American Civil Rights Network; both women were in the house when it was bombed.

The A.D. King Home in the Ensley neighborhood of Birmingham (Henry Thornton/YHN)

The African American Civil Rights Network was created by a unanimously passed act of Congress and signed into law by President Donald Trump in January 2018. It catalogs and publicizes locations significant to the African American Civil Rights Movement of the 1960s.

“I am humbled to be here,” began Secretary Bernhardt when he began his remarks Thursday morning.

The A.D. King home was purchased in 2005 by Omie Crockett, Sr., a contemporary of King’s and civil rights foot soldier who is now 98 years old. Crockett paid to restore the home and was praised by Bernhardt and members of the King family on Thursday. His daughter, Jacqueline Crockett Washington, represented him at the ceremony on Thursday.

“This is a home where many civil rights movement meetings were held,” advised Washington, adding, “Words cannot express our sincere gratitude. To us, this represents all that Rev. A.D. King, Dr. Martin Luther King Jr., and other civil rights greats fought for.”

“This home could have been torn down, those stories could disappear,” Bernhardt said of the value added by recognizing sites such as the A.D. King House. ”

“Those stories in my opinion are what bring us together as a community and as a country. Today’s actions ensure that the events that occurred here on May 11 1963 will never be forgotten, ever,” Bernhardt continued about the importance of the African American Civil Rights Network and its inclusion of the King house.

Aurelia Skipwith, the director of the United States Fish and Wildlife Service, was on hand for the ceremony Thursday morning and noted that the A.D. King House is the 32nd site on the African American Civil Rights Network. Skipwith had a role in implementing the Network before being nominated to head the Fish and Wildlife Service.

“This event is also particularly meaningful to me, because my parents are from Columbus, Mississippi… without the contributions of A.D. King and countless others fighting for freedom and equality I would not be standing here today,” said Skipwith.

“I am proud to be the Service’s 22nd director and the first African American to hold that position in our organization’s 150-year history,” she informed those attending.

During the ceremony, Bernhardt sat to sign the official proclamation adding the A.D. King House to the Civil Rights Network and was embraced by Naomi King.

(Henry Thornton/YHN)

Yellowhammer News asked Bernhardt what he had learned in the commissioning of the 32 sites so far in the Civil Rights Network.

“Understanding how courageous not only are the people we know, but their entire families were involved. Tremendous courage, tremendous leadership,” he replied.

At the conclusion of the event, Yellowhammer asked Naomi King, A.D.’s widow, what it was like to have the Secretary of the Interior travel to Alabama to memorialize the house she once lived in.

“It means the world to me,” she responded, “When I say that it means the world to me, in my heart of hearts, people are people, and love has no color. To have this brother [Bernhardt] sit here today to help celebrate this, it means so much to me.”

Henry Thornton is a staff writer for Yellowhammer News. You can contact him by email: henry@yellowhammernews.com or on Twitter @HenryThornton95

13 hours ago

Molly Cagle is a 2020 Woman of Impact

Building Alabama’s soaring 21st century economy that featured record low unemployment before the COVID-19 pandemic took many unsung heroes working day-in, day-out behind the scenes across public and private sectors.

Similarly, our state is going to need this same type of collaborative servant leadership to enable a successful post-pandemic recovery, securing a prosperous present while paving the way for an even brighter future.

Fortunately for Alabamians, there are pro-jobs champions like Molly Cagle hard at work doing just that.

Cagle, vice president of governmental affairs for the Business Council of Alabama (BCA), has proven a perfect fit in executing the organization’s mission of “making a sweet home for business.”

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In her first weeks on the job in 2019, Cagle was one of the key governmental affairs professionals that helped the historic Rebuild Alabama infrastructure package sail smoothly through the legislature into becoming law.

While that assignment might have seemed like a baptism by fire to outside observers, Cagle’s prior experiences had her well prepared for the job at-hand.

Indeed, fostering a pro-growth environment in which hardworking Alabamians can find high-paying, quality jobs has been Cagle’s mantra throughout her career thus far. Before joining BCA, Cagle served as the director of external affairs for Manufacture Alabama, representing many of the state’s largest employers. Prior to that, she worked on many of the same issues — and more — in the public sector as the Senate liaison for Senate President Pro Tem Del Marsh (R-Anniston).

A graduate of Troy University, Cagle in a recent interview with Yellowhammer News advised that part of what initially drew her to the world of governmental affairs was actually the relative lack of females in the field.

“I have always been interested in politics and government, but always saw the lack of women advocates and leaders in this space,” she said. “I just think women bring such a huge role to the table and have such valuable opinions and insight.”

Cagle outlined how she first pursued her passion by doing the leg work, such as going door-to-door for campaigns. This is why she advises others, “Start where you can. You’re not too good for or above anything.”

She still continues to practice what she preaches to this day.

“Just do whatever it takes to get the job done,” Cagle summarized of her mentality. “Work hard, keep your head down and be persistent.”

That mindset has paid off already for her, and Cagle is also executive director of ProgressPAC, BCA’s vaunted political arm.

However, getting here has not been an easy journey. There have been challenges along the way, including hurdles unique to being a female in a male-dominated arena, like a smaller peer network and less networking chances.

Cagle, though, views these obstacles as opportunities, not detriments.

“It forces me to be better,” she remarked. “It forces me to be the best I can and be more professional, more prepared and have a better command of the issues.”

This outlook of treating challenges as opportunities — and being grateful for them — is indicative of how Cagle lives her life. She explained where her motivation comes from.

“The most rewarding part of my career or my job is seeing others succeed around me,” Cagle said.

This is emblematic of her passion for mentoring and lifting up others, including peers and younger women.

Stressing the importance of “looking behind me and bringing women up,” Cagle commented, “That’s part of who I am, because the reason I am who I am is because of women.”

“A strong influence for me was my mom,” she shared. “She passed away when I was 28 but she taught me that every day is a chance to make someone else’s day better. You never know what fight someone else is fighting. Use this life and the gifts you are given to make the world around you better. Be generous with your time, help those in need and always be grateful for what you have.”

“A lot of times the difference in a good day and bad day is your perspective on it,” Cagle concluded.

Yellowhammer News is proud to name Molly Cagle a 2020 Woman of Impact.

WATCH:

Editor’s note: Yellowhammer Multimedia recently announced the third annual Women of Impact Awards. Honorees are being featured on Yellowhammer News each weekday through October 1. We will tell their stories one-by-one, utilizing written and video formats. Check back daily for more of Alabama’s best and brightest.

Sean Ross is the editor of Yellowhammer News. You can follow him on Twitter @sean_yhn

13 hours ago

Doug Jones on SCOTUS vacancy: ‘I don’t think my vote’s going to count’

U.S. Senator Doug Jones (D-AL) seems intent on keeping his pledge from last year to oppose any hypothetical Supreme Court nomination made by President Donald Trump for the rest of this term.

While Democratic leadership quietly admitted they always knew Jones would back them in voting against Justice Brett Kavanaugh’s confirmation last time-around, Alabama’s junior senator at least acted like he was being considerate throughout the process at times.

This includes Jones’ assertion that he tried to meet with Kavanaugh during the confirmation period, a meeting which — for whatever reason — ultimately did not occur before Jones’ “no” vote.

However, with Trump set to put forward a new SCOTUS nomination on Saturday, Jones apparently does not even view himself as a swing vote anymore.

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RELATED: Tuberville: ‘Doug Jones will vote the way that Chuck Schumer and the liberal Democrats instruct him’

Politico reported that U.S. Senator Joe Manchin (D-WV), who voted in favor of Kavanaugh’s confirmation, is indeed viewed as a gettable vote for Republicans again this go-around.

“I’d love to meet with a nominee. I have no problem,” said Manchin.

Yet, Jones does not see the point for himself to even meet with the nominee.

“I don’t think my vote’s going to count, so I doubt they’ll even want to,” Jones told Politico. “But we’ll see.”

The White House, for its part, is encouraging Democrats to meet with the nominee and act in good-faith.

“The president has not even put forward a nominee yet,” stated Judd Deere, a White House spokesperson, per Politico. “This is pure politics from Senate Democrats and shows they do not take their constitutional duty to advise and consent seriously.”

RELATED: Doug Jones fundraises off of late Justice Ruth Bader Ginsburg’s death

Sean Ross is the editor of Yellowhammer News. You can follow him on Twitter @sean_yhn