1. Alabama Pushes It Way towards Top Three Auto-making States
BIRMINGHAM -- Alabama's annual auto production is expected to near 900,000 in the next few years, a mark that could push it into the top three auto-making states in the country.
Currently No. 5, the state's auto industry will get a capacity boost with planned expansions at the plants operated here by Mercedes-Benz and Honda, as the automakers aim to keep pace with projected sales and make room for new additions on their assembly lines.
And Hyundai, while it hasn't announced an expansion, already has surpassed the capacity at its Montgomery factory this year, and growing demand for its vehicles should help that trend continue.
It's a notable turnaround from just two years ago, when Alabama's auto production bottomed out at just under 468,000 in the midst of the global industry downturn.
2. Raytheon Awarded $241 Million Contract
HUNTSVILLE-- The Missile Defense Agency has awarded Raytheon a $241 million contract to continue design and development of the Standard Missile-3 Block IIA, one of the missiles the company plans to assemble at a plant under construction on Redstone Arsenal.
The SM-3 Block IIA is being co-developed by the U.S. and Japan and is a cornerstone of Phase Three of the administration's "Phased Adaptive Approach" to missile defense. The Block IIA has larger rocket motors and an advanced kinetic warhead that will allow for a greater range and defended area to protect both the U.S. and its allies from ballistic missiles, according to the company.
Raytheon broke ground for the $70 million, 70,000-square-foot missile integration facility on the arsenal in June. It will assemble versions of the SM-3 family of interceptor missiles, and the SM-6 missiles used by the Navy for ship defense.
3. Futaba Expansion Will Create 40 New Jobs in Huntsville
Site preparation work is expected to start soon for a second building for Futaba at Jetplex Industrial Park near Huntsville International Airport.
Futaba Corp. of America recently closed on the purchase of a 10.4-acre parcel in Jetplex Supplier Park, said Brooks Kracke, the industrial park's director, and the first phase of Futaba's expansion includes a 50,000-square-foot manufacturing building. Futaba makes lighted displays for automobile dashboards, microwaves and other appliances and TVs and other entertainment equipment.
Futaba plans to be operating in the new building by May, Kracke said Tuesday at a meeting of the Huntsville-Madison County Airport Authority.
According to Futaba, the building, which will house office, manufacturing and warehouse space, will allow the company to increase manufacturing capacity. The property is east of Wall Triana Highway.
Futaba estimates the new facility, including the land, building and equipment, will cost nearly $8.7 million and estimates 40 new jobs will be created there, with a projected annual payroll of $1.57 million after three years.
4. Cullman Named Top Place To Raise Children
CULLMAN — Cullman was recognized nationally in December, as the publication Bloomberg Businessweek named the city the best place to raise children in Alabama.
The national business magazine cited the success of the Cullman City Schools system as one major factor, as well as the size and location of the city.
“As a lifelong resident of Cullman, I’ve always known it was a good place to raise children, but what this does is verify that,” Mayor Max Townson said. “The article talks about schools, park and recreation, employment, and numerous things we have to offer here ... This is just a magnificent place to live and raise children.”
5. Mercedes Milestone: 1.5 Million Made in Alabama
Mercedes-Benz said in December that its Alabama plant has produced its 1.5 millionth vehicle. The automaker said the milestone vehicle produced at the Vance factory was a silver ML 350 SUV destined for a customer in Encino, Calif.
"We are extremely proud of this significant milestone," Markus Schaefer, CEO of the Alabama plant, said in a statement. "This year has been both challenging and rewarding for our team members, who live and work here in Alabama to help us achieve our goal of delivering superior products to our global customers."
The 2012 M-Class represents the third generation of a SUV that Mercedes-Benz says began the industry trend toward SUVs with a car-like ride.
The first M-Class rolled off the assembly line in Vance on Feb. 14, 1997. The plant employs 2,800 people, a figure that will rise to 4,200 as Mercedes invests another $2 billion in the operation and begins production of new models.
6. Eissmann Plans Second Pell City Expansion in One Year
PELL CITY – Eissmann Automotive North America Inc. will expand operations for the second time within a one-year period.
“Eissmann is a solid, family-owned company that has outperformed even our greatest expectations in Pell City,” said Don Smith, executive director for the St. Clair County EDC. “They pride themselves on the highest quality craftsmanship in the industry, which is a perfect fit for the high-end automotive customers that they serve. They have incredible leadership in management at their Pell City facility, and we look forward to working with them on future expansions.”
Smith said the local German company is planning a $3.75 million expansion, which will create 35 jobs. The company employs approximately 215 people in its Pell City facility.
7. Fort Payne’s Playcore Expands Product Line
A Fort Payne manufacturer of environmentally friendly playground equipment is in the process of expanding its product line at its Fort Payne facility.
The company, Playcore, bought competing manufacturer BigToys of Olympia, Washington last year. In October, the company began moving BigToys' production operation to PlayCore's Southern Fulfillment Center in Fort Payne.
"Acquisitions over the past few years have been a successful part of PlayCore's strategy to broaden our family of brands and provide comprehensive product and program solutions to communities," said Lisa Moore, PlayCore's vice president of strategic services. "We believe play is critical for the overall well being of individuals, families, and communities and it is an important part of our mission to help build communities through play."
Moore said the move will maximize the manufacturing capabilities and expertise of the employees and facilities of Fort Payne.
8. Auto Supplier Expansions Create 120 Jobs
Two German automotive suppliers with plants in Vance have announced expansion plans that will create more than 120 new industrial jobs over the next few years.
Brose, a privately owned German automotive supplier that has served the Mercedes-Benz plant in Vance since 2004, announced a $19.5 million expansion that will allow it to increase its production and result in 94 new jobs, said Johannes Carl, the Tuscaloosa plant’s general manager. It is Brose’s third announced expansion for its Vance plant in the last 24 months.
In October, Brose was named the first automotive supplier for the next generation of the C-Class sedan, which Mercedes will add to its Vance production in 2014.
The Brose plant will make seat structures, including head rests and door systems for the C-Class. It now makes seating components, door systems and engine cooling fans for Mercedes and other auto makers.
The other Vance expansion announcement came from BLG Logistics Inc., which provides automotive component packaging and the sequenced delivery of those component packages to Mercedes.
BLG will spend $4.9 million for its expansion and new equipment and will hire about 30 additional people over the next three years.
Steven Markham, president of BLG Logistics in the U.S., said his company has received a multiyear contract to serve Mercedes in Vance.
BLG receives automotive components from manufacturers in the U.S. and abroad, then packages those components and makes sure they are delivered to the Mercedes plant as they are needed. Mercedes uses just-in-time manufacturing, which has required auto parts to be delivered to the plant as they are needed for installation.
9. SCA To Add Two More Production Lines
SCA Tissue is adding two new production lines at its Shoals facility. Marty Ferguson, director of SCA’s Southeast Operations, said that two new converting lines should be operational by 2013.
Ferguson said a converting line involves taking large rolls of paper called “parent rolls” and converting them into different products, such as paper napkins, hand towels or bath tissue. At the end of the lines, the new paper products are packaged and ready to be boxed and shipped.
The two new lines represent a $7.5 million investment at the company’s facility in Barton Riverfront Industrial Park in western Colbert County.
The new lines will be installed in the existing facility and are similar to recent production expansions, including a $15 million expansion announced in November 2010 and a $4.3 million expansion in August 2010.
“The investment shows SCA’s confidence in the Barton Operation,” Ferguson said. “We’re glad to be in the Shoals area.”
10. Alabama Ranked Sixth Friendliest State for Entrepreneurship
BIRMINGHAM -- The Small Business and Entrepreneurship Council has ranked Alabama the sixth friendliest state for entrepreneurship in the 2011 edition of the nonpartisan business advocacy group's annual report.
The report, "Small Business Survival Index," measures public policy climates for entrepreneurship in all states and Washington, D.C. It analyzes 44 factors related to "government-imposed or government-related costs," such as taxes, regulatory costs, government spending and energy costs. The report pointed out that the none of the top five states imposed taxes on personal income, individual capital gains, corporate income or corporate capital gains.
"That's good news for entrepreneurship and investment, and they combine for a huge competitive advantage," it said.