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Herman Tinsley Senior Project Manager, Economic Development Mobile Area Chamber of Commerce PROJECT MANAGEMENT INSTITUTE MEETING JUNE 27, 2013.

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Presentation on theme: "Herman Tinsley Senior Project Manager, Economic Development Mobile Area Chamber of Commerce PROJECT MANAGEMENT INSTITUTE MEETING JUNE 27, 2013."— Presentation transcript:

1 Herman Tinsley Senior Project Manager, Economic Development Mobile Area Chamber of Commerce PROJECT MANAGEMENT INSTITUTE MEETING JUNE 27, 2013

2 MOVING MOBILE FORWARD

3 MOBILE AREA CHAMBER’S ECONOMIC DEVELOPMENT STRUCTURE Business Retention and Expansion Job Creation and Preservation Recruitment

4 MOBILE AREA CHAMBER’S ECONOMIC DEVELOPMENT STRUCTURE Business Retention and Expansion Workforce Development Job Creation and Preservation Recruitment

5 ► AIDT ► Aviation College of Mobile ► College of Engineering, University of South Alabama ► Southwest Alabama Workforce Development Council ► Mobile Works Inc. ► Career-tech training ► Vocational training starting in high-school WORKFORCE DEVELOPMENT

6 MOBILE AREA CHAMBER’S ECONOMIC DEVELOPMENT STRUCTURE Business Retention and Expansion Workforce Development International Trade Job Creation and Preservation Recruitment

7 INTERNATIONAL TRADE ► Export sales from trade missions in past seven years exceed $212 million with the creation of 3822 jobs ► 2013 Trade missions to Norway & Sweden, China & South Korea, Taiwan

8 MOBILE AREA CHAMBER’S ECONOMIC DEVELOPMENT STRUCTURE Job Creation and Preservation Recruitment

9 RECRUITMENT Candidate Locations Define Search Region - Center-of-Market Analysis Cost Modeling / Incentives Regional Screening - Project Criteria RFP & Proposal Screening Risk Analysis Site Visits / Comparative Assessment Site Decision Source: McCallum Sweeney Consulting, Courtesy of Ms. Jeanette Goldsmith

10 HOW ARE PROSPECTS/CLIENTS GENERATED?  Site Selection Consultants  Utilities  State Agencies  Local & Regional ED Organizations  Construction, Architects, Engineers, Contractors  County, City, Public Authorities  Real Estate Brokers  Rail  Bankers, Financial Institutions  Universities  Existing Industries  Attorneys, Accountants  Trade Show Events (Domestic & International)  Referrals  Investment Missions (Domestic & International)  Internet  Others

11 WHAT ARE THE TOP SITE SELECTION CRITERIA AS CITED BY CLIENTS? 1 Highway accessibility (also, rail and water) 2 Labor costs 3 Occupancy and construction costs 4 Tax exemptions 5 Energy availability and costs 6 Availability of Skilled labor 7 State and local incentives 8 Corporate tax rate 9 Low union profile 10 Available land 11 Availability of buildings 12 Proximity to major markets 13 Right-to-work state Source: Area Development magazine, 23nd Annual Corporate Survey (Dec/Jan 09)

12 TOP SITE SELECTION CRITERIA (CONTINUED) 14 Environmental regulations 15 Expedited or "fast-track" permitting 16 Proximity to suppliers 17 Availability of long-term financing 18 Availability of unskilled labor 19 Training programs 20 Raw materials availability 21 Availability of advanced ICT services 22 Accessibility to major airport 23 Proximity to technical university 24 Railroad service 25 Waterway or ocean port accessibility Source: Area Development magazine, 23nd Annual Corporate Survey (Dec/Jan 09 )

13 WHAT ARE THE TOP QUALITY OF LIFE FACTORS INDICATED AS IMPORTANT BY CLIENTS? 1 Low crime rate 2 Healthcare facilities 3 Housing costs 4 Housing availability 5 Ratings of public schools 6 Climate 7 Colleges and universities in area 8 Recreational opportunities 9 Cultural opportunities Source: Area Development magazine, 23nd Annual Corporate Survey (Dec/Jan 09)

14 ► Excellent Logistics ► Favorable Labor Environment – RIGHT TO WORK STATE ► Low cost of living ► Low cost of doing business ► Competitive incentives ADVANTAGES

15 EXCELLENT LOGISTICS

16 DRIVE TIME FROM MOBILE, AL Kansas City Columbus Detroit Chicago St. Louis Bowling Green Raleigh Mobile One-Day Drive Two-Day Drive

17 RAILROADS SERVING MOBILE

18 INLAND WATERWAY ACCESS Tennessee River Tennessee-Tombigbee Warrior-Tombigbee Gulf Intracoastal Waterway Alabama’s Seaport Provides Access to Nearly 15,000 Miles of Navigable Inland Waterways Serving Great Lakes, Ohio, Upper Mississippi and Tennessee Valley Ports

19 TOP MANUFACTURERS CompanyTotal Employees Austal USA2,800 ThyssenKrupp Steel USA1,550 ST Aerospace Mobile1,500 Outokumpu 705 Goodrich Aerospace (Baldwin County)700 BAE Systems Southeast700 Kimberly Clark700 Evonik644 SSAB Americas500 Continental Motors450 BASF Corporation387

20 FOREIGN BASED INVESTMENTS IN THE MOBILE AREA Country of OriginCompanyProduct AustraliaAustal USAAluminum Ships/Ferries AustriaLenzing Fibers Inc.Tencel Fibers BelgiumHuntsman Advanced Materials Americas Inc.Specialty Chemicals CanadaIB Nitrogen Inc.Fertilizer EnglandINEOS PhenolPhenol & Acetone EnglandShell Chemical LPPetroleum Refining EnglandTate & LyleSplenda Production EnglandBAE Systems Southeast Shipyards AlabamaShip Repair FinlandKemira Water Solutions, Inc.Water Treatment FinlandOutokumpuStainless Steel Processing FranceAirbus North America EngineeringAerospace Industries FranceArkema, Inc.Industrial Chemicals (Durastrength 200) FranceGlobal Tel Link CorporationPublic Payphones, Equipment FranceTechnip OffshoreFlexible Pipe Reel Base GermanyBerg Steel Pipe CorporationIron and Steel Pipe GermanyBASFChemicals GermanyEvonik Degussa CorporationAerosil, Methionine, Hydrogen Peroxide, Hydrogen Cyanide, Sodium Cyanide

21 FOREIGN BASED INVESTMENTS IN THE MOBILE AREA (CONTINUED) Country of OriginCompanyProduct GermanyThyssenKrupp Steel USA LLCCarbon Steel Processing The NetherlandsAkzo Nobel Functional Chemicals LLCSulfur Chlorides The NetherlandsShell Offshore Inc.Natural Gas Processing, Sulfur JapanJamco AmericaAerospace JapanMaster HalcoChain Link Fencing JapanMitsubishi Polycrystalline America CorporationHigh Purity Polycrystalline Silicon JapanPlasmine Technology, Inc.Paper sizing Products JapanRicoh Business SolutionsCopiers, Faxes, and Documentation Machines KoreaGlovis Alabama LLCLogistics Services NorwayAker SolutionsUndersea Umbilical Cables ScotlandEnergy Cranes LLCOffshore Marine Cranes SingaporeST Aerospace Mobile, Inc.Aircraft Maintenance, Repair, & Modification South AfricaBarloworld Handling-Mobile BranchHyster Forklift Sales, Parts, Rental SpainAirbus Military North America Inc.Military Transport, Sales & Service SwedenSSAB AmericasSteel Manufacturers SwedenQuincy CompressorsCompressors SwitzerlandHolcim (US) Inc.Portland & Masonry Cements

22 ► Consultant events – SEDC “Meet the Consultants” in May, direct visits with consultants in major U.S. cities (Atlanta, Chicago, NYC, Houston, L.A., others) ► Trade shows – main focus on aerospace industry, four major air shows targeted in 2012 and others in other industry sectors, partner with MAA on aerospace/aviation marketing efforts, new focus: oil and gas industry ► Participate in state-wide organizations and events: EDAA, AAMA, AAIA, AGP ► Existing industry relationships: visit headquarter facilities, work with our companies on suppliers and customers ► Industrial Development Board of the City of Mobile and Industrial Development Authority of Mobile County ► Mobile Commerce Park, owned and maintained by Industrial Park Board of Mobile MISCELLANEOUS RECRUITMENT ITEMS

23 ON THE EXAMPLE OF PROJECT COMPASS & NEW STAR August 2010

24 PROJECT COMPASS + NEW STAR SPECIFICATIONS ► Huge ► Facility: $3.7 billion (now at $5.2 billion); 3,600 acres; 7 million sq. ft. ► 2,700+ employees; 75% semi or high skill ► Annual Steel Production: ► Carbon 4.1 million metric tons flat carbon steel ► Stainless 1 million metric tons, melt shop rolling and coating

25 ► Initial RFI - Feb 24, C&W ► Site Visits - Apr 4 & 5 ► +New Star; Finalist AL, LA & ARK - Summer ► RFP Due - Sep 29 ► Presentation in Germany - Oct ► Counter RFP - Jan 2007 ► Trip Germany - Feb, AL & LA; ► Gov, Speaker, Lt. Gov, ALDOT, ADO Dir, APC CEO ► MOU – March in Atlanta ► Final & Best Offer – Apr in NY ► ThyssenKrupp Announces – May 11, :40 a.m. PROJECT COMPASS + NEW STAR TIMELINE

26 ALABAMA ADVANTAGES  Port Solution – Carbon Steel Slabs  NS -Rail 70% Outbound Customers  Electricity Competitive  Political Stability  Less Complex Site Development  Lower Long Term Operating Costs  Proven Track Record with “Can Do Attitude”

27 ON THE HUNT…

28 C&W: TEAM WORK - THE ECONOMIC DEVELOPMENT DIFFERENTIATOR ► Alabama assembled a large, aligned team ► ED team performance had material impacts ► Teams differentiated themselves through consistent, exceptional teamwork – C&W and TK noticed ► This project performance can be a role model for the next “mega project”

29 C&W: KEY TEAM TRAITS  Professionalism and problem solving, “can do attitude”  Consistent speed of execution  Necessary government involvement across agencies and jurisdictions from local, state and federal levels  Included third-party expertise (legal, engineering, etc.) aligned with project  Included all key service providers for utilities and transportation  High performing entities of the team prop up the lesser performers  Defined leadership and communication channels

30 Team Alabama! …and many more SECRET TO OUR SUCCESS

31 CHANGES OVER THE PAST 10 YEARS Median HouseholdIncome $34,062$41,252

32 $600 million investment, 1000 jobs A320 family of passenger aircraft Total annual economic impact on the State’s economy will amount to $409 million of additional output (GDP), $172 million of earnings and a total of 4700 FTE employees The total economic impact on Mobile County will be $348 million of output gains, $145 million of earnings influx and a total of 3,900 FTE increase in employment base of the County (State multipliers are estimated to be 2.1, 2.8, and 4.7, for output, earnings and employment, and the County’s multipliers are reported to be 1.8, 2.4, and 3.9)

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