3 years ago

Guest Opinion: Why the Toyota/Mazda plant belongs in Alabama not North Carolina

I recently read an article in the Triangle Business Journal about why North Carolina might have the upper hand on Alabama when it comes to the Toyota and Mazda joint plant Economic Development competition. While they certainly make some well-thought-out points, I figured I would respond to this article with why I think the business case for Alabama is a stronger one.

Logistics and Transportation Costs

While I’m basing my argument on the Baldwin Mega site in Bay Minette Alabama, most of these arguments also apply to Alabama’s other Mega site in the Huntsville area.

Transportation costs for parts from their suppliers, as well as raw materials, and the logistical Network already in place favors Alabama. First of all, the main supplier of steel and stainless steel bought the old Thyssen Krupp steel plant in North Mobile County. Also, the network of railroad tracks that come directly into Mobile and the fact that the Baldwin Mega site is directly connected to the Port of Mobile, their steel supplier and engine plant by rail would allow for huge savings in transportation costs for not only Toyota, but also their parts suppliers.

Job Skills Training

Alabama has literally, not figuratively, written the book on job skills training when it comes to automotive manufacturing skills.  We’ve done it for Mercedes Benz, Honda, Hyundai and the Toyota engine plant in Huntsville. We don’t have to reinvent the wheel, we just have to reproduce it.  Top that off with the fact that the main campus of the Alabama Coastal Community College is less than ten miles from the Baldwin Megasite, and that is a formidable combination.

Shovel Ready

Both Megasites in Alabama are shovel ready, certified and have the site prep work already done.  The Megasite in North Carolina that everyone keeps talking about, the Greensboro site, is still trying to zone all of its site as industrial use. This means that this site is not shovel-ready, the site prep work has not already been done and may have to go through the certification process again. Not being shovel-ready is the reason given why the Memphis Megasite was eliminated from the competition.

Labor

According to the Triangle Business Journal article, one of the advantages North Carolina supposedly has over Alabama is the fact that 10 percent of the labor force in Alabama is unionized, versus 3 percent of North Carolina. While this may technically be accurate, this does not take into account the many and most recent high-profile rejections of unionization amongst auto manufacturing employees at plants at Mercedes and Hyundai and Honda. While Alabama may have more union members by percentage than North Carolina, that has not translated into the auto manufacturing industry.

Also, the Triangle Business Journal article mentions many of the high-profile successes and economic development that Alabama has experienced over the years including Airbus, Boeing, Mercedes-Benz and the other auto manufacturing plants in Alabama. They use this as another reason why North Carolina might have an advantage over Alabama in this competition. They claim that the fierce competition for labor with similar skill sets increases wages for employees with those skill sets.

While this is certainly true, I also make the argument that if the Baldwin Mega site is the site that Alabama submitted for this competition, three or four major employers (Airbus, C-Series, Austal and potentially Toyota/Mazda) in a metro area all looking for people with similar skill sets not only increases the wages for people with those skill sets, but also attracts people with them from other areas of the state and other areas of the country, because they know they have a higher likelihood of getting employed if there are multiple employers in an area looking for their skills.

Political Clout

The Triangle Business Journal also argues that because Toyota does not have a presence in North Carolina, that gives them an advantage over Alabama because Toyota usually looks to expand in areas they are not already in to expand their political clout and political representation in Washington.

I respectfully and firmly disagree with the argument that the Business Journal is making here. If the Baldwin Mega site is the location Alabama submitted for this competition, I think political clout works very strongly in favor of Alabama in this competition. Not only does Alabama’s Congressional delegation at both the House and Senate levels work well together in representing the interest of our state and the interest of our major employers, Alabama House District 1 Representative Bradley Byrne has an extremely strong reputation for fighting for the interest of the major employers in his district. Every budget year Representative Byrne has to work within the budget process to defend the interest of Austal shipbuilding and the LCS program. To do this he has had to build a strong bond with the house delegation from Wisconsin, the other state that builds LCS ships for the Navy, including House Speaker Paul Ryan. That strong working relationship with House Leadership is certainly a factor in favor of Alabama’s bid for the Toyota Mazda manufacturing facility.

Incentives

When Alabama has a fair shot at the competition (giving you the death stare Boeing), and we really want the project, more times than not we get it. It doesn’t matter who our governor is, Bob Riley, Robert Bentley, and now Governor Kay Ivey each have long successful track records at winning economic development projects.

The economic development team that the state of Alabama has assembled, along with local economic development teams all throughout the state of Alabama, work well together hand-in-hand to put incentive packages together that are very attractive and very competitive. The fact that Alabama is one of two states left standing in this competition tells me that Alabama has put a very strong proposal together. Just like in football, when it comes to economic development, Alabama wins way more than they lose, and we have the championship trophies to prove it.

While I have no inside information as to which site Alabama submitted for competition, or what criteria the firm that is heading up the site selection process for Toyota and Mazda is looking for, or what is a priority for Toyota and Mazda, these are all factors that if I were a businessman looking to open this type of project that I would be looking for. Not to mention the fact that the cost of living in the state of Alabama is lower than it is in North Carolina, which means that Toyota and their employees’ spending power is better.

I have followed this competition closely since it was first announced earlier this year. I certainly wish everybody that is still in this competition well; however, if the executives at Toyota and Mazda and their site selection firm want to come down and take a look at the Baldwin Mega site, let me know I’ll be more than happy to treat them to an oyster dinner at The Original Oyster House and show them Mobile Southern Hospitality at it’s best.

David Preston is the owner of a transportation logistics company in Mobile, Alabama. You can follow him on Facebook or Twitter.

29 mins ago

Schoolyard Roots growing stronger, smarter kids in Alabama

When kids participate in the life of a garden, they see the complete cycle of growing food, cooking and preparing it to eat. School gardens are exciting places for kids to learn basic academic subjects, too.

The Tuscaloosa community came together more than 10 years ago to develop a garden-based learning program called the Druid City Garden project, now called Schoolyard Roots.

Schoolyard Roots employs a full-time teaching staff that provides garden lessons for students, as well as professional development training for teachers. The school gardens provide an outdoor experience rare to many students. They are more likely to make healthy choices and try new foods. Students gain a sense of responsibility, to collaborate and work together as a team.

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“When we see a child’s health and education improve, we know that we’re not only investing in that child’s life today – we’re helping them build a better future,” said Nicole Gelb Dugat, interim executive director. “Schoolyard Roots builds community through food. By increasing access to fresh, locally grown produce, we empower our community to make healthy and sustainable food choices.”

In March 2020, the impact of COVID-19 significantly affected the teaching community. Almost immediately, the Schoolyard Roots team began distributing produce from its gardens directly to local families. By the end of last year, the program had distributed more than 750 pounds of fresh garden vegetables to the community.

“We stewarded our gardens as fresh-air sanctuaries, where children and adults could relax, refocus and reconnect,” said Dugat. “Through it all, we shared vegetables and flowers. We cultivated moments of peace and learned together. We could not have done any of it without our incredible community of supporters.”

They found hope and inspiration in the small miracle of seeds planted by the students. Gardens bring joy, peace and courage in times of struggle. And gardens remind us to have hope for new growth and what is to come.

Schoolyard Roots partners with Tuscaloosa-area elementary schools to bring learning to life through teaching gardens. The nonprofit works in 11 elementary schools across Tuscaloosa County.

Its mission is to build healthy communities through food with the Gardens 2 Schools program.

Gardens support and encourage healthful eating as a key component of children’s physical wellbeing, which can aid their academic and social success, too. The garden is woven through many aspects of a school’s curriculum and adapted for different grade levels.

“The Gardens 2 Schools program cultivates curiosity,” Dugat said. “The program teaches the students how to work together (and) learn self-reliability and compassion.”

(Courtesy of Alabama NewsCenter)

56 mins ago

Has Washington’s stimulus measures saved our economy?

Congress is expected to soon pass President Biden’s $1.9 trillion COVID-19 stimulus package, the fourth major response to the pandemic. Did these measures save our economy from a protracted recession?

Our initial response might be yes because of last spring’s economic free-fall. The stock market declined 20%. Unemployment jumped from 3.5% in February to 14.8% in April, the highest level since the Great Depression. GDP fell 10% in the second quarter.

The economy stopped collapsing and began regaining ground. The stock market hit new record highs. Unemployment fell to 6.3% in January and inflation-adjusted GDP in the fourth quarter of 2020 was within 2% of the 2019 level. Post hoc ergo prompter hoc, however, is a logical fallacy.

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Macroeconomists disagree over whether government spending can lift an economy out of recession. Keynesians, following John Maynard Keynes’ analysis of the Great Depression, see a role for government stabilization. Austrians in the tradition of Ludwig von Mises and Friedrich Hayek argue that government often causes recessions. New classical analysis has blown many holes in Keynesian theories.

Regardless of the efficacy of a fiscal stimulus, our economy may not have faced a recession in 2020. The COVID-19 slump arguably resembled an off-season shutdown in a resort community more than a recession. Except that the pandemic shutdown was unexpected while seasonal closures are planned.

The economy could have been expected to bounce back on its own if the business closure and stay-at-home orders did not last too long. And this seemingly happened during the summer and fall.

How can we assess the stimulus spending? The Payroll Protection Plan and augmented unemployment likely kept some persons employed and softened the financial blow for idled workers. These programs could also be viewed as compensation owed by the government for business closure orders, not a stimulus. Personal saving has risen sharply, so many households’ stimulus checks produced little spending.

Unemployment programs have been beset by fraud. The Foundation for Government Accountability estimates that fraudulent schemes siphoned off $36 billion, more than the $26 billion in unemployment compensation paid out in all of 2019. Do Keynesians think fraud is a fiscal stimulus?

One trillion stimulus dollars were unspent as of January 2021. While some Republicans argued that we should spend this money before approving President Biden’s proposal, the unspent money was in the process of being spent. Still, money not yet spent did not stimulate the economy in 2020.

Proponents of fiscal stimulus warned that the economy would sputter without a fall stimulus. One forecast warned of a five percentage point increase in unemployment and 5% decline in GDP. The House and Senate did not agree on an encore to the CARES Act until December. And yet unemployment fell and GDP grew in the fourth quarter.

Even if some spending helped in 2020, the current stimulus package is almost certainly unnecessary. The Congressional Budget Office was already expecting growth to recover “rapidly,” with GDP surpassing the pre-pandemic level by mid-year and unemployment returning to its prior level by early 2022. For comparison, after the Great Recession unemployment did not reach its 2007 level until 2016.

President Biden’s package includes $500 billion to stabilize state budgets. States operate under balanced budget rules, so revenue declines due to the pandemic would trigger spending cuts potentially slowing the recovery. The $500 billion was based on an 8% decline in state revenues; the Wall Street Journal reports that revenues will be down only 1.6%.

Whatever the verdict on the stimulus spending, it worsened the national debt by about $3 trillion. The long-term debt impact may easily offset any short-term boost to the recovery.

The economic case that government spending can prevent or end a recession is weak. Fortunately, the COVID-19 shutdowns did not trigger a prolonged recession. While we might say, “Better safe than sorry,” the cost of the stimulus will be with us for years to come.

Daniel Sutter is the Charles G. Koch Professor of Economics with the Manuel H. Johnson Center for Political Economy at Troy University and host of Econversations on TrojanVision. The opinions expressed in this column are the author’s and do not necessarily reflect the views of Troy University.

1 hour ago

Packaging Corp. of America plans $440 million project at Alabama mill

JACKSON, Alabama – Packaging Corp. of America (PCA) plans to launch a three-year, $440 million project to permanently convert a paper machine at its mill in Clarke County to produce linerboard used for corrugated packaging.

Lake Forest, Illinois-based PCA announced that it discontinued the production of uncoated freesheet, used for copy paper and other applications, on its No. 3 paper machine at the Jackson mill in late 2020.

After a temporary switch to produce linerboard, PCA is now making preparations to convert the mill’s paper machine into a 700,000-ton-per-year high-performance, virgin kraft linerboard machine in a phased approach over the next 36 months.

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PCA said key elements in the conversion project include the installation of an OCC plant for recycling old corrugated containers and various pulp mill modifications. In addition, modifications and upgrades will be made to critical sections of the paper machine.

PCA Chairman and CEO Mark Kowlzan said the project will enable the company to meet strong packaging demand and to optimize the Alabama mill’s profitability and viability. The capital cost of the conversion is expected to be approximately $440 million.

“We are appreciative of the continued support from the State of Alabama, the Alabama Department of Commerce, the City of Jackson and Clarke County to help us continue providing quality jobs and a positive economic impact in the Jackson community,” Kowlzan said.

ECONOMIC IMPACT

Governor Kay Ivey said the project represents a positive development for the Jackson mill, a major industrial employer with more than 500 workers.

“Packaging Corp. of America’s reinvestment in its Jackson manufacturing facility will solidify the plant’s future by enhancing its competitiveness,” Governor Ivey said.

“This decision underlines the company’s confidence in its Alabama operation while also preserving jobs and safeguarding local education tax dollars. It’s a win for the company, the community and the state.”

Greg Canfield, Secretary of the Alabama Department of Commerce, said PCA’s project will increase the efficiency of the Clarke County plant while providing a long-term economic boost to Jackson, a city with a population of around 5,300.

“We’re committed to helping existing businesses grow and thrive in Alabama, and the impact of a major investment is always magnified when in happens in rural communities,” Secretary Canfield said.

“With this project, PCA is positioning its Jackson mill for the future, which will significantly benefit the city and the region for years to come.”

‘LONG-STANDING RELATIONSHIP’

Jackson Mayor Paul R. South said the project will allow PCA to continue providing quality jobs while securing a positive economic future for Clarke County.

“The City of Jackson looks forward to working with the corporation as the project moves forward,” South said. “In my opinion, they couldn’t have selected a better community.  Jackson is a safe and peaceful city full of great people, with good schools and recreation and a strong work force, along with extensive natural resources.”

“This is wonderful news for Clarke County and the City of Jackson,” said Stan Hutto, chairman of the Clarke County Commission. “We have a long-standing relationship with this outstanding company, and we are committed to helping them achieve their goals to ensure a bright, successful future.”

PCA is the third largest producer of containerboard products and the third largest producer of uncoated freesheet paper in North America. PCA operates eight mills and 90 corrugated products plants and related facilities.

The Jackson mill’s No. 1 paper machine will continue to produce uncoated freesheet products.

(Courtesy of Made in Alabama)

2 hours ago

Alabama’s Helen Keller was more than a hero for the disabled

She could neither see nor hear. But her vision influenced countless millions.

Helen Keller’s influence reached far beyond her native Alabama. She became a celebrity at an early age and remained so throughout her life.

Born in 1880 in Tuscumbia, Keller was 19 months old when an illness left her deaf and blind.

With the help of Anne Sullivan, her teacher for 49 years, she was able to learn how to communicate.

In her prime, she was traveling across the world making appearances and giving inspirational speeches.

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She became known for her tireless activism on behalf of workers’ and women’s rights, her literary work, and her tenure as an unofficial U.S. ambassador to the world.

“Helen Keller lived her life as an example of what people with disabilities could accomplish,” said Keller J. Thompson, her great grand-niece. “She so desired within her innermost being that people with disabilities be given a chance to prove the many things that they could do in this life. By her own experiences, she knew that people with disabilities could have great impacts on the world around them and every day of her life she was eager to be someone that impacted the world in a positive way, leaving it a better place than she found it.”

Keller attended several educational institutions and was accepted at Radcliffe College, where she graduated with honors, becoming the first deaf person to obtain a university degree.

According to an Encyclopedia of Alabama account, in the decades after college, Keller become increasingly involved in politics. She became an advocate of suffrage, unemployment benefits and legalized birth control for women.

She blamed industrialization and poverty for causing disability among a disproportionately large number of working-class people and became increasingly concerned about racial inequalities. She expressed her views through public speeches, newspaper and magazine articles, interviews and appearances at rallies.

Keller entered the 1920s seeking a meaningful public life and financial stability. The newly created American Foundation for the Blind (AFB) supplied both. Working on behalf of blind people with the AFB, Keller became a successful fundraiser and political lobbyist.

From the 1920s through the early 1940s, she worked to raise funds and lobby state and national legislatures. She emphasized educational and employment possibilities for people with disabilities, particularly those who were blind.

A trip to Japan in 1948 was the catalyst for Keller’s transformation from tourist to semi-official ambassador for the United States. Thrilled by her reception in Japan, the State Department worked with the AFB to fund and facilitate her travels and promote her as a representative of Americanism.

In 1964, President Lyndon Johnson awarded her the Congressional Medal of Freedom. When she died in 1968 at the age of 88, she was one of the most famous people in the world.

Keller’s journey from a deaf, blind girl to graduating from Radcliffe and becoming a prominent writer and political activist provided inspiration to millions of people with disabilities.

Although she left Alabama at the age of 8, she always claimed Ivy Green, her family’s house in Tuscumbia, as home, and she continued to identify herself as a Southerner throughout her life and travels.

Keller said: “Your success and happiness lie in you. Resolve to keep happy, and your joy and you shall form an invincible host against difficulties.”

Throughout March, Alabama NewsCenter is recognizing Alabama women of distinction, past and present, in celebration of Women’s History Month.

(Courtesy of Alabama NewsCenter)

3 hours ago

Rep. Aderholt warns congressional Democrats moving to allow for taxpayer-funded abortions

FLORENCE — Since 1976, the Hyde Amendment has banned the use of federal funds to pay for abortion except in the extreme case of saving the life of a pregnant woman or terminating a pregnancy that resulted from incest or rape.

The Hyde Amendment has stood the test time, most recently during the 2010 Affordable Care Act debate. However, U.S. Rep. Robert Aderholt (R-Haleyville) warns now that Democrats have the House, Senate and White House, the Hyde Amendment is in their crosshairs.

At an appearance before the Shoals Republican Club on Saturday, Aderholt discussed the possibility of Democrats ending the Hyde Amendment, adding it could come down to one or two Senate Democrats preventing a vote to end the filibuster rule in the U.S. Senate.

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“[O]ne of the things that is most egregious about what’s happening now is abortion — you know, one of those issues that has always been Democrats and Republicans have disagreed on. But one thing Democrats and Republicans could always somewhat agree on was federal funding of abortion off-limits. It’s one thing that if abortion would be allowed, and of course, I’m pro-life. I don’t agree with that. But at least the Democrats would embrace the idea we would not take federal government taxpayer dollars to fund abortion. That is out now. Democrats want to make it so federal funds, your tax dollars, can go for abortion. And that’s a really scary thing.”

“The Hyde Amendment is what we’re talking about. They want to destroy the Hyde Amendment. So, we’re going to do everything we can to make sure we keep the Hyde Amendment. It’s hard on Republicans — it’s hard on the House side, the Republicans being in the minority. Then on the Democrat side in the Senate with only 50 votes — then hopefully, we can get Manchin or some of those others to come along with us to try to make the rule out of order. We’re five seats basically from taking the majority in the House of Representatives.”

Aderholt was optimistic about Republicans’ chances in 2022 to regain control of the House but added his party had to be vigilant in the meantime.

@Jeff_Poor is a graduate of Auburn University and the University of South Alabama, the editor of Breitbart TV, a columnist for Mobile’s Lagniappe Weekly, and host of Mobile’s “The Jeff Poor Show” from 9 a.m.-12 p.m. on FM Talk 106.5.