Alabama Adds Proof
to the Pudding

(cover)
Northern Alabama Wins the Other Mega-project
Honda Locates
to Central Alabama

Activity Pours into Southern Alabama
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Alabama Adds Proof
to the Pudding

b y   T R A C Y   H E A T H

The Heart of Dixie concocts an invigorating cocktail of skilled labor, a strong infrastructure and a can-do attitude for businesses looking to grow.

Mobile, AlabamaThe old adage about proof and pudding may soon become synonymous with Alabama's business location capabilities. For although salesmen for the state can wax poetic about Alabama's many assets, the real proof of its can-do attitude is in the high-caliber projects that have landed there in the past several years.

"Three of the more prestigious location projects in recent years have located in Alabama," says Bill Boyd, a principal with Lockwood Greene Consulting (www.lg.com). "First, there was Mercedes and then Boeing's Delta IV Rocket facility and now the Honda plant that's going to Lincoln. These are three home runs; they're doing very well."


ABOVE RIGHT: Mobile's location on the Gulf Coast makes it an ideal spot for such new
projects as Austal USA, a joint venture between Australia-based Austal Ships and Bender Shipbuilding & Repair Co. of Mobile.

The latest in Alabama's big-name wins was American Honda Motor Co.'s decision last May to build a US$400 million assembly plant in Lincoln, Talladega County. The 1.7 million-sq.-ft. (157,935-sq.-m.) facility will initially employ 1,500 workers, and it may ultimately employ as many as 3,000 workers.

The area's strong infrastructure and solid work ethic were among the many reasons Honda chose the Lincoln site, say company officials. "We believe the state of Alabama has what we need to continue our success in America -- an outstanding community of people, excellent transportation systems and the necessary infrastructure to support our industry," says Koichi Amemiya, president of American Honda Motor Co. (For more on Honda's decision, see "How Honda Chose Alabama" in the January 2000 issue of Site Selection.)

But the Honda announcement did more than add another name to the high-caliber roll call. It also added a dollop of cream atop the proverbial pudding in that it represented a shift in the way decision makers look at Alabama, says Steve Sewell, director of marketing with the Economic Development Partnership of Alabama (www.edpa.org). "For years we worked very hard to earn a place on the consideration list for world-class companies that had big projects," he explains. "Honda had conducted a search and had placed Alabama on the short list before we even knew they had a project."


With Attitude to Boot

Over the past several years, Alabama has taken major steps to create the friendliest possible atmosphere for both new and existing industry. Last year, for example, the state legislation passed a six-bill economic development package that covers everything from a 21st Century fund for issuing bonds to the creation of multi-county industrial development authorities.

The state also lets inquiring companies know that it is ready for business. In fact, Boyd says, Alabama's greatest asset is its can-do attitude. And despite party changes in the Governor's office, he adds, the state always maintains that commitment to growth and a positive business climate.

However, Boyd throws one wrench into the Alabama economic development machine, and that is its tort laws. Tort laws are the biggest downside he can see to locating in Alabama. In the past, he explains, "Alabama had become known as a litigious state, a state that was a magnet for lawsuits against industry with juries that were disposed to making very high punitive awards toward corporations."

But, he also acknowledges that some of the problems were handled during last year's legislative session. Gov. Don Siegleman signed into law two tort bills sponsored by the Business Council of Alabama, which were designed to limit the ability of lawyers to file lawsuits in counties with plaintiff-friendly juries and to make it more difficult for lawsuits to become class actions. Later in the year, Gov. Siegleman also passed a bill that puts a cap on punitive damages in civil lawsuits.

Alabama is also moving forward in education reform. And although it "already contributes more resources to K-12 public education than most states," says Robert Sutton, manager, public information, with the Alabama Development Office, "in some areas there is not as much local support. But the present legislature is considering laws to require more local support for schools. The legislature is also considering a college scholarship program for all high school students making required grades in core subjects."

Couple the state's ongoing legislative efforts and can-do attitude with its already strong infrastructure and geographic location, it's easy to see why such names as Honda and Mercedes have come to call Alabama home. And they're not alone. Here's a look at what's happening around the state.

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