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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Northern Alabama Wins The Other Mega-project

Huntsville, AlabamaAlthough the Honda and Mercedes plants located in central Alabama, northern Alabama has had its share of "mega-projects" as well. In fact, in the past five years, says Mike Roberts, executive director with the North Alabama Industrial Development Assn., "we have attracted at least one every year, and these are projects of $100 million or more."

1999's mega-project was Navistar's $250 million engine manufacturing plant in Huntsville. The plant, which will manufacture engines for Ford Motor Co. and other OEMs, will initially employ 600, growing to 1,000 employees at full production.


ABOVE RIGHT: Huntsville won a major announcement from Navistar in 1999.
Navistar will invest $250 million in an engine manufacturing plant.

Other auto-related announcements include Federal-Mogul Corp.'s 200-employee expansion in Athens. The expansion will allow the facility to produce more crankshaft seals for heavy-duty diesel and automotive engine manufacturers.

These announcements mark one of the biggest trends in northern Alabama, according to Brian Hilson, vice president of economic development with the Huntsville/Madison County Chamber of Commerce, and that trend is toward greater diversification. "The perception that a lot of people have of the Huntsville area is that it's a high-tech community that does some fancy things in the space industry," he ex-plains. "And that is true, but the community is much, much broader than that. We've made a lot of headway in our diversification."

In fact, Huntsville is now home to 27-foreign based companies; it is an established leader in electronics manufacturing and information technology; and nine biomedical companies have established facilities in the region. In 1999, northern Alabama saw investments from such diverse groups as Target, Skyhook Technologies, Boeing, Ferguson Enterprises and Vintage Pharmaceuticals. Vintage, which already has facilities in Huntsville, is expanding its operations with a $56 million expansion and 300 jobs.

Among the more traditional businesses locating in northern Alabama is Skyhook Technologies, a Utah-based aviation-support company. Skyhook selected Huntsville for its helicopter refurbishing facility, which will be located in the Redstone Arsenal. Leasing a 12,000-sq.-ft. (1,115-sq.-m.) hangar, Skyhook will employ up to 500 workers in the next three years.

Cummings Research Park, Huntsville, AlabamaAlso, Boeing, which already employs approximately 3,000 in the Huntsville area, is moving more of its operations to northern Alabama as well. First, the aerospace firm has relocated a facility from Georgia to Huntsville, creating 300 new jobs. And Boeing Sikorsky is moving its joint venture management office from Philadelphia to Huntsville's Cummings Research Park, adding about 50 new jobs.

In other industry segments, north Alabama is coming into its own as a distribution location as well. The area's strong infrastructure network is the key attraction for these facilities. In fact, the north-south corridor of Interstate 65 bisects north Alabama, and the Port of Huntsville is an excellent industrial and air cargo facility, with direct nonstop service to Europe, Mexico and Asia. The Tennessee River also provides barge access to the Gulf Coast as well as the Great Lakes.


ABOVE LEFT: Cummings Research Park in Huntsville continues to be a strong draw
for the area.   Last year, Boeing Sikorsky's joint venture management office relocated
to the park from Philadelphia.

Huntsville's first major distribution center was announced last year by Target Stores. In a $60 million to $80 million investment, Target will build a 1.2 million-sq.-ft. (111,484-sq.-m.) warehouse and distribution center in west Huntsville, where it will employ up to 800 workers.

"In Target's case, our highway transportation coincided with their basic geographic needs," says Hilson. "Huntsville, for many years, has been a cotton farming community, so we have a lot of flat land, and now many of the cotton mills have been converted to fantastic industrial and research areas. So we didn't have any difficulty in finding a large site that met Target's needs."

Ferguson Enterprises, the nation's largest wholesale distributor of plumbing products, also plans to take advantage of the area's distribution capabilities. In 1999, the plumbing distributor set up a $21 million, 483,000-sq.-ft. (44,872-sq.-m.) center in Fort Payne, where it will employ 125 new workers.

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