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Huntsville Regional Economic Growth Initiative

CHAMBER OF COMMERCE OF HUNTSVILLE/MADISON COUNTY

2016

Blueprintb S U C C E S S

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Table of Contents

Introduction . . . . . . . . . . . . . . . . . . . . . . . . .3

HREGI Investors . . . . . . . . . . . . . . . . . . . . . .4

Investor ROI2011-2015 Performance Report

Recruit & Develop . . . . . . . . . . . . . . . . . .5

Workforce & Education . . . . . . . . . . . . .6

Growth & Opportunities . . . . . . . . . . . .7

HREGI Impact . . . . . . . . . . . . . . . . . . . . . . . .8

Bluprint for SUCCESS

Image . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Workforce & Education . . . . . . . . . . . . 11

Cummings Research Park . . . . . . . . . . 12

Redstone Arsenal, Public Policy & Advocacy . . . . . . . . . . . 13

Small Business & Entrepreneurial Assistance . . . . . . . . . . 14

Business Expansion & Targeted Recruitment . . . . . . . . . . . . . . 15

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IntroductionWhy has Huntsville been so successful? Is it that we are just lucky or is it something more? Luck has sometimes been described as the confluence of preparation and opportunity . We would propose that our community has been successful because we have positioned ourselves to be lucky! The resources entrusted to the Chamber by our HREGI investors, coupled with the insightful guidance of our public and private sector leadership has resulted in a series of significant wins in the economic development arena and enhancements to our region’s quality of life .

This document articulates the success made possible through the resources provided by our HREGI investors, and lays out the path forward for the next phase of the program . Our Chamber is a more dynamic and effective organization due to the unique position we have in the community . We enjoy a healthy partnership with our public sector partners, working to navigate through challenges and exploiting opportunities . A culture has developed where we can work with our partners to craft effective solutions to the issues which need to be addressed . We benefit from a wealth of experience and perspectives – all of which bring value to the discussion . Our community provides fertile ground for leveraging HREGI Investments to realize significant gains .

The Chamber engaged the University of Alabama in Huntsville (UAH) to provide an objective analysis of the economic impact of the projects we announced from 2013-2015 . The UAH research team determined the projects announced over the three-year period will result in an increase in the regional GDP of $4 .2 billion, the creation of 15,200 operations related jobs, and just under $1 billion a year in additional payroll – a 3,500% return (measured against the increase in GDP) on the $7 million invested in the HREGI program over the last five years .

Investors in the HREGI Program entrusted the Chamber with the additional resources with the belief that they would be utilized in a manner that would enhance the economic vitality of the region . The results speak for themselves . When resources are leveraged properly, they yield positive results for our community and the region . The impact of these efforts is a stronger, more vibrant economy, and a higher quality of life .

We need your support to ensure that we maintain the momentum we have created . Strong private sector leadership will ensure that the business community plays a proactive role in addressing the issues that will shape our community and region for decades to come . We look forward to working with you to grow our economy, enhance the workforce and education systems, and improve the quality of life of the Huntsville Region .

We thank those who have made our success possible and look forward to welcoming new investors!

Rose Allen2016 Board Chair

Chamber of Commerce of Huntsville/Madison County

Ron PoteatHREGI Taskforce Chair

Chamber of Commerce of Huntsville/Madison County

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HREGI Investors

4SITE, Inc. • AECOM • Alpha Beta Technologies, Inc. • Amanda Howard Real Estate • Anglin Reichmann Snellgrove & Armstrong, PC

Averbuch Realty Co., Inc. – Scott Averbuch • BancorpSouth • Brown Precision, Inc. • Bryant Bank • CB&S Bank • Century Automotive

CFD Research Corporation • Coast Personnel Services • deciBel Research • Decisive Analytics Corporation • Deloitte LLP • DESE Research, Inc.

Digium, Inc. • Fite Building Company, Inc. • FLS, Inc. • Fountain, Parker, Harbarger • Garver • General Atomics • HEMSI • Hiley Cars Huntsville

Huntsville Botanical Garden • Huntsville/Madison County Convention & Visitors Bureau • Huntsville Tractor & Equipment, Inc. • InterFuze Corporation

Investor’s Resource/Raymond James • IronMountain Solutions • The Lioce Group, Inc. • Littlejohn Engineering Associates, Inc. • LSINC Corporation

MSB Analytics, Inc. • National Bank of Commerce • North Alabama Multiple Listing Service • PALCO Telecom Service • PHOENIX

PROJECTXYZ, Inc. • Public Financial Management, Inc. • QTEC • Renasant Bank • RJ Young • Sierra Lobo, Inc. • Sigmatech, Inc.

Systems Products and Solutions, Inc. • Technicolor • Venturi, Inc. • West Huntsville Land Co., Inc.

BBVA Compass • Crestwood Medical Center • Lockheed Martin Corporation

PNC Bank • SAIC • SES - Science and Engineering Services, LLC

PROGRESS INVESTORS

ASRC Federal Analytical Services • Baron Services, Inc. • BASF Corporation • BB&T • Bill Penney Toyota, Scion & Mitsubishi

Bradley Arant Boult Cummings LLP • Coates Transportation Group • Colliers International • Connected Logistics

Consolidated Construction Company • Corporate Office Properties Trust (COPT) • Davidson Technologies, Inc. • Google

Huntsville-Madison County Builders Association • iBERIABANK • J. Smith Lanier & Co. • Keel Point, LLC

L-3 - Corporate Huntsville Operations • LEAN Frog Business Solutions, Inc. • LogiCore • MTS, Inc. • The Orthopaedic Center

Progress Bank • Radiance Technologies • Rosie’s Restaurants, Inc., & Right Way Restaurants, Inc. (DBA Steak Out) • SELEX Galileo Inc.

ServisFirst Bank • Turner • Vencore, Inc. • Wells Fargo Bank • Woody Anderson Ford

PROGRESS PARTNERS

AEgis Technologies Group • Aerojet Rocketdyne • Blue Cross & Blue Shield of Alabama • Booz Allen Hamilton, Inc.

DynCorp International • Dynetics, Inc. • First Commercial Bank • Jerry Damson, Inc. • Landers McLarty Corporation

Lanier Ford Shaver & Payne P.C. • Northrop Grumman Corporation • PARSONS • Raytheon Company • S3

Sealy Management Company, Inc. • Teledyne Brown Engineering, Inc. • Torch Technologies • Wyle CAS Group

CHAMBER TRUSTEES

EXECUTIVE COUNCIL

Huntsville Hospital

Madison CountyCommission

Regions Bank

Port of Huntsville

TennesseeValley

Authority

ADTRAN, Inc.The Boeing Company

City of MadisonEmerson Network Power - Avocent

Redstone Federal Credit UnionRemington Outdoor Company

As of August 5, 2016

DEVELOPMENT PARTNER

PRESIDENT’S CIRCLE

DEVELOPMENT COUNCIL

REGIONAL PARTNERS

CHAIRMAN’S COUNCIL

LEADERSHIP FORUM

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Investor RO I

2011-2015 Performance Report:Recruit & Develop

• Recruit targeted businesses, diversify our economic base, and develop the capacity for new and sustained growth

• Strengthen the community’s image through outreach campaigns to help attract new industries and potential workforce

• Lead Southeast metros in employment growth in professional, scientific, and technical workers and announce at least 400 primary jobs annually for a total of 2,000 over 5 years .

• Lead community’s infrastructure priority agenda development and submit report annually to State legislators .

• Conduct targeted image campaigns to promote our community using digital, video, print, social media and other assets .

• Added 5,278 jobs from new employers in the Huntsville Metro Area from 2011 to 2015, averaging 1,111 per year — nearly triple our annual target .

• Directly supported regional workforce recruitment for expanding and new employers — including federal — through recruitment visits, presentations and information packets .

• Identified key infrastructure projects in collaboration with the Cities of Huntsville and Madison, and Redstone Arsenal and Madison County . Projects were included in our State and Federal Agendas .

• Recruited new Director of Cummings Research Park who is solely charged with promoting/marketing/advocating/growing CRP . Director is managing a new comprehensive analysis and update to CRP’s master plan, developing and launching new communications platforms, and initiating events that take place in and highlight the Park .

• Developed recruitment video, redesigned Chamber website in 2012, and from 2010-2014 retained DCI Communications and BIG Communications to pitch Chamber/regional stories to national and trade media . Additionally, new media relationships garnered over $3 million in earned media in 2015 alone .

OBJECTIVES

MEASURES

OUTCOMES

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Added 5,278 jobs (triple our annual target); collaborated with city/county to develop state and federal agendas; hired CRP director to lead master planning update.

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Investor RO I

2011-2015 Performance Report:Workforce & Education

• Ensure adequate quality and quantity of talent to meet employer needs . Identify workforce issues that may limit our economic development and work with community organizations to eliminate such issues .

• Lead business community’s collective workforce recruitment through a coordinated campaign .

• Increase local employment at an average annual rate of at least 3 .7%, for a total of 18 .5% .

• Ensure local school systems are aware of the community’s workforce and recruitment objectives .

• Employment in metro area has increased 5 .5% between 2011-2015, for an annual average increase of 1 .4% .

• Directly supported regional workforce recruitment for expanding and new employers — including federal — through recruitment visits, presentations, videos and information packets .

• Through our efforts, filled more than 50% of BRAC jobs with new-to-Huntsville workers, deterring anticipated raids on local talent .

• Led statewide efforts to retain the Alabama College and Career Ready Standards through three legislative sessions where they faced repeal efforts .

• Supported Tennessee Valley BRAC Committee in securing $175 million for capital projects across 15 school systems .

• Partnered with The Schools Foundation to promote skills required by local employers .

• Enabled formation and expansion of Career Coaches program from a regional initiative to a statewide program, which was funded accordingly .

• Held career expos and continued to facilitate communications between educators and employers .

• Hosted regional workforce summit to communicate current workforce situation and identify solutions to misalignment between occupations and projected workforce .

• Hired a workforce director to re-establish the Chamber’s workforce development program .

OBJECTIVE

MEASURES

OUTCOMES

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Filled >50% of BRAC jobs with new-to-Huntsville workers; secured $175 million for capital projects; identified workforce needs and developed long-term strategy; hired workforce director to lead statewide efforts.

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Investor RO I

2011-2015 Performance Report:Growth & Opportunities

• Grow and preserve the Huntsville region’s existing economic base, business climate and culture

• Grow the community’s defense, space and life sciences industries and assets

• Identify issues that may limit our economic development and coordinate with community organizations to eliminate those issues

• Assist existing companies to create an additional 2,600 jobs annually for a total of 13,000 jobs, and invest $200 million annually for a total of $1 billion over 5 years .

• Lead the development of the community’s business and infrastructure priorities and advocate for their development

• Recruit and attract more federal agencies, programs, targeted companies, and skilled workforce to the region in defense, space and life sciences .

• Engage local, state and federal delegations on the community’s challenges and opportunities . Address the challenges and harness the opportunities .

• 7,471 new jobs created by existing Huntsville companies between 2011-2015 .

• More than $1 billion invested in capital projects by existing companies in the community .

• Prioritized key issues, and worked with the Congressional delegation and staff to support key programs bringing funding levels well above those proposed by the Administration .

• Employment on Redstone grew from ~34,000 in 2011 to more than 41,000 in 2015 .

• More than $340 million in capital improvements invested on Redstone Arsenal in just the last 5 years .

• Supported efforts to develop industrial sites throughout all of Huntsville/Madison County, including the annexed portions of Limestone County .

• Cummings Research Park zoning and development guidelines are being evaluated in a comprehensive analysis, which will lead to a new master plan .

• Huntsville Utilities initiated a project to significantly increase its water capacity .

OBJECTIVES

MEASURES

OUTCOMES

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Huntsville companies added 7,471 new jobs; supported Redstone growth from 34,000 to 41,000 employees; led infrastructure and industrial site efforts for future recruitment.

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HREGI Impact

Economic Impact Study: Executive Summary

As a major U .S . metropolitan area, Huntsville/Madison County is arguably the economic center of north Alabama with impacts easily extending beyond the county of Madison and the state of Alabama . By performing regular analysis of this community’s economic development announcement activity and its economic impact within a specified geographic range, the resulting compiled report of the impacts can provide insight useful to the community, its leaders, and other interested stakeholders .

The economic impact analysis conducted for this report defines the impact region to be Madison County and the contiguous counties of Jackson, Limestone, Marshall, Morgan, and Lincoln County, Tennessee . Economic development announcements of the Chamber of Commerce of Huntsville/Madison County for the years 2013, 2014, and 2015 were analyzed including the major cities of Huntsville, Madison, Athens, and Decatur .

Economic impact can be defined in various terms such as jobs, economic activity (output), payroll, and tax generation among other measures . The impacts are typically shown through components of direct and multiplier impacts over one or more years . Projects announced include sites in Madison County inside and outside of the city limits of Huntsville and Madison and the city of Huntsville in Limestone County .

The estimated economic impacts for the combination of economic development projects for 2013-15 on the region include:

• $4 .2 billion expansion of the region’s economy

• 15,200 operations-related jobs

• $989 million in additional annual payroll

• $1 .46 billion impact from capital investments (building, equipment, etc .)

• 11,300 capital investment related jobs

• $567 million in capital investment-related payroll

• $128 million increase in net annual taxes generated (employment, state, local)

• $52 million in net local taxes (sales, property and other taxes)

∏ $30 million in local sales taxes

∏ $21 million in local property taxes

∏ $1 million in other taxes

The impacts will be realized over the period of years required to complete the projects . The impact estimates in this report are stated in 2015 constant dollars . Tax abatements have been used in the calculations to determine the net tax impacts .

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HREGI ImpactAn analysis of the economic development projects announced by the Chamber of

Commerce of Huntsville/Madison County for years 2013, 2014, and 2015 .

* Shown in 2015 Dollars

t Our regional employment will increase by more than 15,000 jobs over the next 10 years.

q Over the next 10 years, the region’s economy will expand by more than $4 billion.

u The region’s growth in labor income will soar to nearly $1.2 billion in 2025.

January 2016 Analysis performed by: Center for Management & Economic Research,

College of Business Administration, University of Alabama in Huntsville

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Blueprint for SUCCESS

Image

• Increase awareness and visibility of Chamber image with our targeted Economic Development (ED) markets, members, decision makers and other key influencers

• Evolve social media efforts on several platforms

• Expand and establish relationships with local, regional and national media

• Organize a small, diverse core regional branding team to craft a regional branding RFP

• Maximize our regional and global reach to all stakeholder groups through enhanced marketing and multi-tiered media channels, and develop new communication assets to strengthen awareness of our image

• Develop/launch new website and expand digital media products, and social media efforts

• With many ED projects and innovations with existing companies earning national media attention, continue pitches and promoting story ideas for earned media

• Community branding campaign developed and implemented

• Click Through and Open Rates increase by 2% over prior year

• Track and report out metrics of digital content and social media content on a monthly basis to include; chart effectiveness

• Place two earned media national stories per year about Huntsville Metro

OBJECTIVE: Create a collaborative regional brand that solidly positions our region as an inviting place to start a business, relocate a company, and recruit an outstanding workforce .

We must actively manage the image of our market – engaging in the conversation allows us to shape the perception of the region.

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Blueprint for SUCCESS

Workforce & Education

• Track regional workforce requirements; engage business and industry in workforce development

• Ensure that students, parents, educators and career coaches understand regional career opportunities, relevant resources to explore them and pathways to pursue them

• Advocate for rigorous academic standards and assessments; communicate progress to the business community

• Support recruitment needs of new and expanding companies

• Facilitate alignment of education, workforce and economic development systems to be more employer/career driven

• Promote alignment of public and private resources to meet workforce requirements

• Enable diverse and flexible provider networks that meet the needs of employers

• Develop a dashboard of education metrics in collaboration with local school systems that reflects employer priorities

• Promote employee engagement to maintain and improve positive work environments

• Hold events to convene stakeholders, convey progress and identify challenges

• 85% positive feedback from new and expanding companies on effectiveness of recruitment support activities

• 85% positive feedback on employer surveys relative to workforce supply and satisfaction

• Positive trend in alignment of post-secondary studies to occupation projections

• 75% employee engagement

• Positive indicators on K-12 and postsecondary dashboards

• Increase co-op/intern/training programs

OBJECTIVE: Partner with stakeholders to provide the talent that supports

our economic growth .

It is critical that we get workforce right! Empowering students to make more informed choices will result in a better alignment between education attainment and employment.

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• Finalize and begin implementation of a new comprehensive master plan for CRP

• Establish a sense of community among employees in Cummings Research Park by creating unique programming and evolving communication platforms

• Promote CRP to sustain, grow and diversify the Park

• Work with the Perkins+Will team to finalize the CRP market research and comprehensive master plan

• Coordinate partners to support and begin phased implementation of the CRP master plan

• Identify and launch new and diverse events throughout 2016 highlighting the companies, technologies and community found in CRP

• Create new CRP website and branding materials

• Continue to grow social media platforms and proactively partner with the media for CRP stories

• Engage in an ongoing dialogue with CRP owners and site executives

• Actively pursue new companies and support growth of existing companies in the Park

• Establish relationships and market CRP at industry trade shows like BIO, I/ITSEC, and others

• Develop phased plan for CRP master plan implementation and the funding plan to support implementation

• Increase in the number of CRP prospects each year as well as announced companies/jobs

• Create new CRP events and activities to occur on a minimum of a monthly basis with an increase in attendance for each recurring event

• Launch new CRP website that will enable property searches/community events, news and include track-able analytics

• Update CRP company list to accurately capture the number of companies and employees in CRP

• Develop and distribute new CRP branding materials

• Grow Facebook following to 400 followers; grow Twitter to 600 followers

• Launch quarterly CEO coffee; create video updates for owners and site executives

OBJECTIVE: Grow, diversify and strengthen the second largest science and technology Research Park in the U .S .

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Cummings Research Park (CRP)

Blueprint for SUCCESS

CRP has been a vital part of the economic success of our region for more than 50 years. The Master Plan will position the park for success well into the future.

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• Prepare the Chamber and the Tennessee Valley to win in future rounds of BRAC

• Pursue federal programs and opportunities to locate new and expanding activities to expand Redstone’s roles and missions .

• Develop an aggressive agenda identifying key federal issues facing our region

• Pursue opportunities to grow the federal presence at Redstone and in the Huntsville metro area

• Work with Redstone Arsenal to help position Redstone for potential growth as a result of future rounds of BRAC

• Work with business and elected leaders to identify critical issues

• Work with defense contractors to retain a greater percentage of federal contracted dollars flowing through Redstone Arsenal in the Huntsville metro area

• Capital investment on Redstone

• Employee headcount on Redstone

• Increase Federal defense and NASA contract dollars and work performed locally

• Federal contractor growth

OBJECTIVE: Pursue policies and legislation that ensure our Nation’s position as a global leader in defense, space, national security; secure

our community’s role as a science and technology powerhouse .

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Redstone Arsenal, Public Policy & Advocacy

Blueprint for SUCCESS

It is ESSENTIAL that we remain both vigilant and proactive in advocating for Redstone and the VITAL missions that take place on the Federal campus.

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• Develop and assist new start-up ventures

• Grow innovation through partnerships with technology spin off startups

• Assist small businesses by providing expert coaching and mentorship

• Nurture entrepreneurs with assistance and workshops

• Empower growth through a robust entrepreneurial Eco-System

• Engage the entrepreneurial and small business community in a collaborative effort to enhance services

• Develop business assistance web portal

• Create a business intake system-partnering with the SBDC

• Create technology to give direct web access to resources from partner agencies and organizations

• Create a multidimensional support initiative designed to provide assistance to small businesses

• Provide opportunities for networking and enhanced visibility

• Increase the number of counseling referrals to the SBDC by 10%

• Track and report small business expansion startups in the region

• Track and report small business expansion startups in the region

• Build a robust awareness of the entrepreneurial eco system in the region, by engaging all resource partners

• Conduct 100 surveys quarterly, to track the successes and challenges of small businesses

OBJECTIVE: Cultivate opportunities for small businesses in the region to grow and succeed .

Small Business & Entrepreneurial Assistance

Blueprint for SUCCESS

Growth of our small business and entrepreneurial sectors is key to the economic vitality of our region.

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Business Expansion & Targeted Recruitment

• Sustain and grow existing business and industry

• Recruit companies in our targeted industry sectors

• Balance growth between federal/commercial and service/goods production

• Recruit in industry sectors that complement our assets

• Conduct existing business/industry interviews as part of an integrated business retention and expansion program

• Actively market the community to consultants and companies in diverse venues using innovative communication methods

• Develop and implement a marketing plan to identify and attract complementary business and industry to our region

• Conduct a minimum of 160 existing industry visits annually

• Announce 500 primary jobs a year and $300 million in capital investment from companies new to the region

• Assist existing business and industry in the region to add an additional 500 jobs a year coupled with capital investments of $200 million

• Implement a balanced economic development strategy that maintains active prospects in all 5 target industries

• Build international awareness of the community and our capabilities at premier events such as the Paris Air Show, the Farnborough Air show and the National Space Symposium as well as new and/or emerging market venues

OBJECTIVE: Power the regional economy with sustainable growth in new and existing companies .

Blueprint for SUCCESS

Diversity and balance within our region’s economy are key to ensuring that we can weather the ebbs and follows of the business cycle.

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Chamber of Commerce of Huntsville/Madison County225 Church Street NW, Huntsville, AL 35801

256-535-2000 • info@hsvchamber .org

www.hsvchamber.org