Economic Impactsof the Economic Development
Announcements 2013-2015
An analysis of the economic development projects announced by the Chamber of Commerce of Huntsville/Madison County for years 2013, 2014, and 2015
Analysis performed by:Center for Management & Economic Research
College of Business AdministrationUniversity of Alabama in Huntsville
Dr. Brinda MahalingamMr. Jeff Thompson
January 2016
January 2016 page | 2Commissioned by the Chamber of Commerce of Huntsville/Madison County
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
I . Regional Impacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Cumulative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
II . Impacts by County . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Madison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Limestone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Morgan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Marshall . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Jackson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Lincoln (TN) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
III . Impacts by Major City . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Huntsville . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Madison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Athens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Decatur . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
IV . Impacts by Major Industry Sector . . . . . . . . . . . . . . . . . . . . . . . . 37
V . Impact Data Tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Madison County . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Huntsville City . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Madison City . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Limestone County . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Athens City . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Morgan County . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Decatur City . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Marshall County . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Jackson County . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Lincoln County, TN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
VI . Economic Development Announcements . . . . . . . . . . . . . . . . 49
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
VII . Economic Impact Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
Impact Process Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
VIII . Key Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
IX . Industry Sectors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
Contents
Commissioned by the Chamber of Commerce of Huntsville/Madison CountyJanuary 2016 page | 3
Economic Impacts of Economic Development Announcements 2013-2015
The Huntsville Metropolitan Statistical Area (MSA), one of the Metropolitan Statistical Areas (MSAs) in United States, had a 2014 pop-ulation of 441,086. It ranked as the 118th largest MSA in the U.S1. It is arguably the economic center of north Alabama with business activities easily extending beyond the county of Madison and the state of Alabama. Performing regular analysis of the economic im-pacts of this community’s economic development announcement activities can provide insight useful to the community, its leaders, and other interested stakeholders. The economic impact of a specified geographic range, which includes the surrounding regions are compiled in this report.
The impact region for this study is defined as Madison County and the contiguous counties of Jackson, Limestone, Marshall, Morgan, in Alabama and Lincoln County, Tennessee. The study also analyses the impact on the major cities of Huntsville, Madison, Athens, and Decatur. Economic development announcements by the Chamber of Commerce of Huntsville/Madison County for the years 2013, 2014, and 2015 were used for the analysis.
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 corporate limits of Huntsville City and Madison City as well as the City of Huntsville in Limestone County.
The estimated economic impacts for the combination of economic development projects for 2013-15 in 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
Executive Summary
1 Data from U.S. Census
Commissioned by the Chamber of Commerce of Huntsville/Madison CountyJanuary 2016 page | 4
Economic Impacts of Economic Development Announcements 2013-2015
The economic impacts will be realized over the period of years required to complete the announced 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. The cumulative impact estimates by county and major city are shown in Table 1.
Economic Development Impacts 2013-2015*
ANNUAL OPERATIONS (Recurring) CAPITAL INVESTMENTS (One time)
JobsLabor Income
($000)Economic
Output ($000) JobsLabor Income
($000)Economic
Output ($000)Madison County 11,725 $787,900 $2,694,565 7,229 $357,291 $949,997Limestone County 3,067 $186,172 $1,460,005 3,958 $203,336 $488,821Morgan County 246 $10,987 $49,740 59 $2,354 $8,304Marshall County 48 $2,087 $9,857 21 $1,545 $4,233Jackson County 68 $2,776 $12,985 34 $1,439 $6,645Lincoln County 64 $2,488 $8,040 31 $1,157 $4,177
Region Total 15,218 $992,410 $4,235,192 11,332 $567,122 $1,462,177
Huntsville City 9,766 $662,139 $3,074,418 8,592 $425,632 $1,092,159Madison City 942 $42,329 $131,420 390 $18,874 $53,248Athens City 300 $14,113 $50,540 211 $10,840 $20,669Decatur City 118 $5,249 $23,763 28 $1,125 $3,967
*Shown in 2015 Constant Dollars
Local taxes collected as a result of new and expanding industries are important considerations in economic development. Recruiting projects is costly. Tax impacts are important measures of the return on investment. Local taxes include sales taxes, property taxes, and other business taxes and fees. Table 2 shows the annual impacts on local taxes for each year’s economic development announcements.
Annual Local Tax Impacts*
2013 Projects ($000)
2014 Projects ($000)
2015 Projects ($000)
TOTAL ($000)
Sales Taxes $6,908 $13,879 $9,569 $30,356Property Taxes $4,864 $9,812 $6,178 $20,854Other Taxes $218 $444 $324 $986Regional Total $11,990 $24,135 $16,071 $52,196
*In the year all projects are fully realized
Table1
Table2
January 2016 page | 5Commissioned by the Chamber of Commerce of Huntsville/Madison County
The economic impacts on the North Alabama region from the economic development project announcements in 2013, 2014, and 2015 are tre-mendous. This economic development production has created opportunities in the region for 15,200 new jobs, a $4.2 billion annual expansion of the regional economy, and $52 million in additional annual local taxes. These charts show estimated impacts for a ten-year period starting with the year project construction begins.
Cumulative Impacts of Economic Development Announcement 2013-2015
*Shown in Current Dollars
Figure1
Commissioned by the Chamber of Commerce of Huntsville/Madison CountyJanuary 2016 page | 6
Economic Impacts of Economic Development Announcements 2013-2015
Huntsville is a technology-rich city, and a major hub in the North Alabama region. The population growth in this city over the past five years has been about 4.4%. The unemployment rate, currently 5%, is typically below the national and state unemployment rates. Nicknamed “Rocket City” because of its long and significant role with the U.S. space and missile programs, the city has been at the forefront in developing space technology. Huntsville/Madison County serves as the economic center of north Alabama, and relies significantly on the surrounding region for workforce, industry suppliers, shoppers, and resources necessary for industry success. The City of Huntsville in Madison County has successfully attracted new industries into the local area for many years. Several companies have located to this area for the rich resources as well as the highly educated and technical labor force.
Economic development is an activity focused on growing jobs for residents, customers for businesses, suppliers for industry, and economic activity for the local economies. The diversity of an industrial base can also be managed through targeted development to maintain a more stable and resilient economy. Typically, economic development success is measured in terms of jobs and capital investment. Annual announcements of new and expanding industry are made by economic development organizations to show the level of success for the past year. However, the realization of the impacts from new and expanding industries normally occurs over several years as plants are built, employees are hired, and operations reach the planned levels.
The actual impacts of economic development efforts are multifaceted and may exceed expectations. One of the most important steps in estimating impacts is the selection of the geographic region (county, state, etc.) to be affected by the new project or activity. Expansions of existing operations tend to be completed in less time than the establishment of new operations, which often require new facility in-vestments. A single project may include multiple phases (construction, workforce training and hiring, etc.) over several years to reach an-nounced levels. Each phase may uniquely impact the region depending on the size, scope, and integration with the existing industrial base.
Economic impacts may be defined in various terms such as jobs, economic activity (output), payroll, and tax generation among other measures. The impacts are typically shown as direct impacts and multiplier impacts. Impacts are spread over the multiple industry sectors in the region and are affected by the extent to which a specific industry sector exists in the region analyzed.
Spending (the direct impact) of a specific industry results in production and spending in other industries. The construction, equip-ment, and operations of an expansion, will result in the production of products and services in related spending (indirect impact). The employees working in the new or expanded operations will use their income to make personal purchases, which will increase spending (induced impact) in other industries not related to their employment. The indirect plus induced effects are combined into the multiplier effect.
This impact study was conducted using IMPLAN® software developed by MIG Inc. The Chamber of Commerce of Huntsville/Madison County provided the data and list of announcements from which this study was performed. Multi-Regional Input Output analysis was conducted where appropriate.
The impact region for this analysis is comprised of the Alabama counties of Madison, Limestone, Morgan, Marshall, Jackson and Lin-coln County, Tennessee. The major cities for which impact estimates are calculated include Huntsville, Madison, Athens, and Decatur. It is important to note that economic estimates are made possible by defining a set of assumptions for the analysis. Results of this and any economic impact analysis should be viewed in light of the assumptions used2.
Introduction
2 See page 59 for the statement of assumptions in this analysis
Commissioned by the Chamber of Commerce of Huntsville/Madison CountyJanuary 2016 page | 7
Economic Impacts of Economic Development Announcements 2013-2015
I. Regional Impacts by Year
The north Alabama Region is defined for this analysis as the Alabama counties of Madison,
Limestone, Morgan, Marshall, Jackson, and Lincoln County, Tennessee. Impact estimates are
shown for jobs, economic output, labor income, and local taxes for the total of all projects
announced in each year 2013, 2014, and 2015. The ramp up of the impacts is based on the
announced schedule for employment and/or capital investments. Impact data for each year is
presented. The employment and output impacts are classified into direct impact and multiplier
impacts. Labor income is calculated using payroll information and number of jobs created. All
amounts are shown in 2015 constant dollars.
January 2016 page | 8Commissioned by the Chamber of Commerce of Huntsville/Madison County
The graphs for 2013 shown in Figure 2 depict the impact assessments for employment, output, la-bor income, and local tax for the announcements made in 2013. The employment impacts of the announcements made in 2013 indicate an impact of 4,073 capital investment related jobs in 2014. The operations related jobs impact is estimated at 1,537 in 2014, and growing to 3,314 by 2015, and would continue at this level over the 10-year period shown. The economic output impact for the announcements made in 2013 indicate a total impact of over $533 million from capital expendi-tures, and a total output impact from about $322 million in 2014 growing to about $787 million by 2023. The Labor income impact from the 2013 an-nouncements totals $100 million in 2014 growing to about $246 million by 2023. The impact on local taxes from the 2013 announcements is expected to be about $5.6 million in 2014, and grow to about $12 million after 2015.
Impacts of Economic Development 2013 Announcements
Figure2
*Shown in Current Dollars
January 2016 page | 9Commissioned by the Chamber of Commerce of Huntsville/Madison County
The impacts for the announcements made in 2014 are shown in the Figure 3 graphs. The cap-ital investment employment impacts total 3,258 capital investment jobs. The total job creation in-creased to over 6,500 jobs by 2023. The economic output impact in terms of capital investment was $423 million. Operations related economic output grows from about $580 million in 2015 to approx-imately $1.9 billion over ten years. Total local tax impacts rose from roughly $8 million in 2015 to $24 million in ten year period.
Impacts of Economic Development 2014 Announcements
Figure3
*Shown in Current Dollars
January 2016 page | 10Commissioned by the Chamber of Commerce of Huntsville/Madison County
The impacts from 2015 announcements are de-picted in the Figure 4 graphs. The total job creation from capital investment is about 4,000 jobs. The total operating jobs grow from about 2,460 jobs in 2016 to over 5,300 jobs in 2025. The total econom-ic output due to capital investment in 2015 is ap-proximately $506 million, and the total economic output impact rises from $840 million to $2 billion in 2025. The total impact of taxes ranges from $7 million in 2016 to more than $15 million by 2025.
Impacts of Economic Development 2015 Announcements
Figure4
*Shown in Current Dollars
January 2016 page | 11Commissioned by the Chamber of Commerce of Huntsville/Madison County
Figure 5 graphs show the cumulative total impacts of all the announcements in 2013, 2014, and 2015. The impacts are shown as direct effects, multiplier effects, capital investment effects, and operations of the new business, and expansion projects. The local tax impacts are also for sales tax, property tax, and other taxes.
*Shown in Current Dollars
The total impact of employment in capital in-vestment is spread over the three years of the an-nouncements, and the total jobs impact over the period from 2014 to 2025 increases from about 1,500 in 2014 to about 15,000 jobs by 2025. The total impact of output from capital investment for all projects in the three years is $1.5 billion. The total cumulative impact of output for all projects rises from operations of $322 to almost $4.8 bil-lion by 2025. Labor Income impact is calculated to be about a $100 million in 2014, and increases to slightly over $1.1 billion by 2025. Cumulative local tax impacts of all projects announced in 2013-2015 rise from $5.5 million in 2014 to $53 million by 2025.
Cumulative Impacts of Economic Development Announcement 2013-2015
Figure5
January 2016 page | 12Commissioned by the Chamber of Commerce of Huntsville/Madison County
Commissioned by the Chamber of Commerce of Huntsville/Madison CountyJanuary 2016 page | 13
Economic Impacts of Economic Development Announcements 2013-2015
II. Impacts by County
The greatest economic impacts are in areas closest to the business location sites. In this section
of the study, we examine the economic impacts by county for the three years of this project –
2013, 2014, and 2015. Employment impacts, economic output impacts, annual labor income,
and local tax impacts are analyzed by county. All amounts are shown in 2015 constant dollars.
January 2016 page | 14Commissioned by the Chamber of Commerce of Huntsville/Madison County
Commissioned by the Chamber of Commerce of Huntsville/Madison CountyJanuary 2016 page | 15
Economic Impacts of Economic Development Announcements 2013-2015
MadisonCounty
The estimated impacts on Madison County by the fully implemented Economic Development Announcements made in 2013, 2014, and 2015 are:
• $2.7 billion annual expansion of the region’s economy
• 11,725 operations related jobs
• $950 million impact from capital investments
• 7,229 capital investment related jobs
• $787.9 million in annual payroll
• $357.3 million in capital investment related payroll
• $50.6 million increase in local taxes
January 2016 page | 16Commissioned by the Chamber of Commerce of Huntsville/Madison County
Figure 6 shows the employment impact for Mad-ison County at 6,126 for 2013 projects, 9,434 for 2014 announcements, and 3,394 for 2015 proj-ects. The total impact for each year’s announce-ments for all three categories is $1 billion for 2013 projects, $2 billion for 2014 and approximately $373 million for 2015 announcements. Operations Labor Income impact for 2013 projects is $208 million, $464 million for 2014, and $115 million for 2015 announcements. Local tax impacts are $11 million for 2013, $23 million for 2014 and $15 million for 2015 announcements.
Impacts of Economic Development Announcements on Madison County
Figure6
*Shown in 2015 Constant Dollars
Commissioned by the Chamber of Commerce of Huntsville/Madison CountyJanuary 2016 page | 17
Economic Impacts of Economic Development Announcements 2013-2015
LimestoneCounty
The economic impacts on Limestone County by the fully implemented Economic Development Announcements made in 2013, 2014, and 2015 are estimated at:
• $1.5 billion annual expansion of the region’s economy
• 3,067 operations related jobs
• $489 million impact from capital investments
• 3,958 capital investment related jobs
• $186 million in annual payroll
• $203 million in capital investment related payroll
• $254,000 increase in local taxes
January 2016 page | 18Commissioned by the Chamber of Commerce of Huntsville/Madison County
Figure 7 shows the impacts for employment, out-put, labor income, and taxes in Limestone county. Employment impact is 1,127 jobs for 2013 an-nouncements, 114 jobs for 2014, and 5,785 jobs for 2015 announcements. The total economic output for Limestone County is about $143 million for 2013, just over $25 million for 2014, and more than $1.7 billion in 2015 announcements. Annual labor income impacts for 2013 announcements totaled $5.8 million, $4.3 million for 2014, and over $175 million for 2015 announcements. Total tax impact shows that for 2013 announcements the local tax impact is $112 thousand, about $54 thousand for 2014, and $88 thousand for 2015 an-nouncements.
Impacts of Economic Development Announcements on Limestone County
Figure7
*Shown in 2015 Constant Dollars
Commissioned by the Chamber of Commerce of Huntsville/Madison CountyJanuary 2016 page | 19
Economic Impacts of Economic Development Announcements 2013-2015
MorganCounty
The estimated impacts on Morgan County by the fully implemented Economic Development Announcements made in 2013, 2014, and 2015 are:
• $50 million annual expansion of the region’s economy
• 246 operations related jobs
• $8 million impact from capital investments
• 59 capital investment related jobs
• $11 million in annual payroll
• $2 million in capital investment related payroll
• $620,000 increase in local taxes
January 2016 page | 20Commissioned by the Chamber of Commerce of Huntsville/Madison County
Figure 8 illustrates Morgan County impacts. The total employment impact for 2013 projects is 68 jobs, 116 jobs for 2014, and 121 jobs for 2015 an-nouncements. Morgan County has no direct impact as none of the projects announced were located in the county. However, being adjacent to Madison County, it does receive multiplier effects. The total output impact for announcements made in 2013 is $8 million, $20 million for 2014, and $30 million for 2015 announcements. The labor income im-pacts are about $1.5 million for 2013, $4.5 million for 2014, and $5 million for 2015 projects. The lo-cal tax impacts are about $820 thousand for 2013, $222 thousand for 2014, and approximately $519 thousand from 2015 announcements.
Impacts of Economic Development Announcements on Morgan County
Figure8
*Shown in 2015 Constant Dollars
Commissioned by the Chamber of Commerce of Huntsville/Madison CountyJanuary 2016 page | 21
Economic Impacts of Economic Development Announcements 2013-2015
MarshallCounty
The estimated impacts on Marshall County by the fully implemented Economic Development Announcements are:
• $10 million annual expansion of the region’s economy
• 48 operations related jobs
• $4 million impact from capital investments
• 21 capital investment related jobs
• $2 million in annual payroll
• $1 million in capital investment related payroll
• $285,000 increase in local taxes
January 2016 page | 22Commissioned by the Chamber of Commerce of Huntsville/Madison County
Graphs in Figure 9 show the impacts for Marshall County. The total employment impact from 2013 announcements is 17 for 2013, 26 jobs for 2014, and 26 jobs for 2015 announcements. The total economic impact for Marshall County is about $3 million for 2013, $5.2 million for 2014, and about $5.7 million for 2015 announcemnts. Labor In-come impacts show $362 thousand for 2013, $877 thousand for 2014, and $848 thousand for 2015 announcements. The total local tax impact for Marshall County is $69 thousand for 2013, $109 thousand for 2014, and $107 thousand for 2015 announcements.
Impacts of Economic Development Announcements on Marshall County
Figure9
*Shown in 2015 Constant Dollars
Commissioned by the Chamber of Commerce of Huntsville/Madison CountyJanuary 2016 page | 23
Economic Impacts of Economic Development Announcements 2013-2015
JacksonCounty
The estimated impacts on Jackson County by the fully implemented Economic Development Announcements made in 2013, 2014, and 2015 are:
• $13 million annual expansion of the region’s economy
• 68 operations related jobs
• $7 million impact from capital investments
• 34 capital investment related jobs
• $3 million in annual payroll
• $1 million in capital investment related payroll
• $202,000 increase in local taxes
January 2016 page | 24Commissioned by the Chamber of Commerce of Huntsville/Madison County
Jackson County impacts are shown in Figure 10. Total employment impact from 2013 announce-ments is 27 jobs, 44 jobs for 2014, and 31 jobs from 2015 announcements. The total economic output in Jackson County for 2013 announcements is $4 million, $8.8 million for 2014, and about $6.8 mil-lion for 2015 announcements. The Labor Income impact is $402 thousand for 2013, $1.4 million for 2014, and $985 thousand for 2015 projects. The total local tax impact for Jackson County for 2013 projects is $40 thousand, $81 thousand for 2014, and $81 thousand for 2015 announcements.
Impacts of Economic Development Announcements on Jackson County
Figure10
*Shown in 2015 Constant Dollars
Commissioned by the Chamber of Commerce of Huntsville/Madison CountyJanuary 2016 page | 25
Economic Impacts of Economic Development Announcements 2013-2015
LincolnCounty, TN
The estimated impacts on Lincoln County, Tennessee by the fully implemented Economic Development Announcements made in 2013, 2014, and 2015 are:
• $8 million annual expansion of the region’s economy
• 64 operations related jobs
• $4 million impact from capital investments
• 31 capital investment related jobs
• $3 million in annual payroll
• $1 million in capital investment related payroll
• $193,000 increase in local taxes
January 2016 page | 26Commissioned by the Chamber of Commerce of Huntsville/Madison County
Figure 11 illustrates the impacts for Lincoln Coun-ty, Tennessee for Employment, Output, Labor Income and Local Taxes. Lincoln County impacts include 23 jobs for 2013, 44 jobs for 2014, and 28 jobs for 2015 announcements. The total economic output impact in Lincoln County for 2013 projects is $2.4 million, $6.2 million for 2014, and $3.5 million from 2015 projects. Labor income Impact is $329 thousand for 2013, $1.5 million for 2014, and $670 thousand for 2015 announcements. The total local tax impact on Lincoln County is approx-imately $35 thousand for 2013, $100 thousand for 2014, and $55 thousand for 2015 projects.
Impacts of Economic Development Announcements on Lincoln County, TN
Figure11
*Shown in 2015 Constant Dollars
Commissioned by the Chamber of Commerce of Huntsville/Madison CountyJanuary 2016 page | 27
Economic Impacts of Economic Development Announcements 2013-2015
III. Impacts by Major City
Economic impacts are realized within counties and region, and can also be estimated munic-
ipalities. Employment, economic output, annual labor income, and local tax impacts are esti-
mated for the four major cities within the region based on employed labor force, and the tax
rates relevant to each city. It is important to note that the impact estimates, especially at the city
level is heavily biased toward the existing industry base. Projects that bring new or significantly
expanded industry sectors could be underrepresented in this analysis due to rapid expansion
of supply chains not historically present in the region. All amounts are shown in 2015 constant
dollars.
January 2016 page | 28Commissioned by the Chamber of Commerce of Huntsville/Madison County
Commissioned by the Chamber of Commerce of Huntsville/Madison CountyJanuary 2016 page | 29
Economic Impacts of Economic Development Announcements 2013-2015
City of Huntsville
Estimated impacts on the City of Huntsville by the fully implemented Economic Development Announcements of 2013, 2014, and 2015 are:
• $3.1 billion annual expansion of the region’s economy
• 9,766 operations related jobs
• $1.1 billion impact from capital investments
• 8,592 capital investment related jobs
• $662 million in annual payroll
• $426 million in capital investment related payroll
• $27 million increase in local taxes
January 2016 page | 30Commissioned by the Chamber of Commerce of Huntsville/Madison County
The total economic impacts on employment, out-put, labor income, and taxes for the City of Hunts-ville are shown in Figure 12. The total employment impact is 6,001 jobs for 2013 projects, 5,023 jobs for 2014, and 7,335 jobs for 2015 announcements. The total economic output for 2013 announce-ments in Huntsville is $1 billion, $1.1 billion for 2014, and $2 billion for 2015 projects. The labor income impact for 2013 is $178 million for 2013, $247 million for 2014, and $237 million for 2015 projects. The total local tax impact for 2013 is $6.2 million, $12.5 million for 2014, and $8.2 million for 2015 announcements.
Impacts of Economic Development Announcements on Huntsville City
Figure12
*Shown in 2015 Constant Dollars
Commissioned by the Chamber of Commerce of Huntsville/Madison CountyJanuary 2016 page | 31
Economic Impacts of Economic Development Announcements 2013-2015
City of Madison
The estimated impacts on Madison City from the fully implemented Economic Development Announcements are:
• $131 million annual expansion of the region’s economy
• 942 operations related jobs
• $53 million impact from capital investments
• 390 capital investment related jobs
• $42 million in annual payroll
• $19 million in capital investment related payroll
• $7 million increase in local taxes
January 2016 page | 32Commissioned by the Chamber of Commerce of Huntsville/Madison County
Figure 13 illustrates the total impacts by employ-ment, output, labor income, and taxes for Madi-son City. The total impact on employment for 2013 projects is 388 jobs, 491 jobs for 2014, and 453 jobs for 2015 announcements. Total economic output impact for the City of Madison from 2013 projects is $57 million, $65 million for 2014 and $62 mil-lion for 2015. Labor income impact for 2013 is $12 million, $17 million for 2014 and $13 million in 2015. The total local tax impact for Madison City is about $1.6 million for 2013, $3.3 million for 2014, and $2.1 million for 2015 announcements.
Impacts of Economic Development Announcements on Madison City
Figure13
*Shown in 2015 Constant Dollars
Commissioned by the Chamber of Commerce of Huntsville/Madison CountyJanuary 2016 page | 33
Economic Impacts of Economic Development Announcements 2013-2015
City of Athens
The estimated impacts on the City of Athens by the fully implemented Economic Development Announcements in 2013, 2014, and 2015 are:
• $51 million annual expansion of the region’s economy
• 300 operations related jobs
• $21 million impact from capital investments
• 211 capital investment related jobs
• $14 million in annual payroll
• $11 million in capital investment related payroll
• $135,000 increase in local taxes
January 2016 page | 34Commissioned by the Chamber of Commerce of Huntsville/Madison County
The total employment, output, labor income, and tax impacts for the City of Athens is shown in Figure 14. The total employment impact for 2013 announcements is 67 jobs, 61 jobs for 2014, and 383 jobs for 2015 projects. The total output impact for 2013 is $12 million, $13 million for 2014, and $46 million for 2015 projects. The labor income impact is about $1.1 million for 2013, $2.3 million for 2014, and about $10 million for 2015 projects. The total local tax impact for 2013 projects is $60 thousand, about $29 thousand for 2014, and $48 thousand for 2015 announcements.
Impacts of Economic Development Announcements on Athens City
Figure14
*Shown in 2015 Constant Dollars
Commissioned by the Chamber of Commerce of Huntsville/Madison CountyJanuary 2016 page | 35
Economic Impacts of Economic Development Announcements 2013-2015
City of Decatur
The impacts on the City of Decatur by the fully implemented Economic Development Announcements in 2013, 2014, and 2015 include:
• $24 million annual expansion of the region’s economy
• 118 operations related jobs
• $4 million impact from capital investments
• 28 capital investment related jobs
• $5 million in annual payroll
• $1 million in capital investment related payroll
• $296,000 increase in local taxes
January 2016 page | 36Commissioned by the Chamber of Commerce of Huntsville/Madison County
Total impact for employment, output, labor in-come, and taxes for the City of Decatur are shown in Figure 15. The total employment impact for 2013 announcements is 33 jobs, 55 jobs for 2014, and 58 jobs for 2015 projects. The total economic output for 2013 projects is $3.8 million, $9.6 mil-lion for 2014, and $14.2 million for 2015 projects. Labor income impact is $734 thousand for 2013, $2.1 million for 2014, and $2.4 million for 2015 an-nouncements. The total local tax impact for 2013 projects is $49 thousand, $106 thousand for 2014, and $142 thousand for 2015 announcements.
Impacts of Economic Development Announcements on Decatur City
Figure15
*Shown in 2015 Constant Dollars
Commissioned by the Chamber of Commerce of Huntsville/Madison CountyJanuary 2016 page | 37
Economic Impacts of Economic Development Announcements 2013-2015
IV. Impacts by Major Industry Sectors
The top twenty-five sectors most impacted by the 2013, 2014, and 2015 economic development
project announcements are shown in Table 3 and Table 4. Economic output, and employment
effects are shown for each sector. Economic output dollars represent the value of all the poten-
tial direct plus multiplier transactions in the industry sectors present in the specified region.
Note that the estimated economic impact value should be viewed as the size of the opportunity
for the industries in the local region to provide products, services, and workforce to the new
project(s).
The sector rankings may differ between tables due to the Output-per-Job differences by sector.
Note there are additional sectors impacted beyond those listed here.
Commissioned by the Chamber of Commerce of Huntsville/Madison CountyJanuary 2016 page | 38
Economic Impacts of Economic Development Announcements 2013-2015
Potential Economic Output Impacts for Top 25 Sectors
Economic OpportunityIndustry Sector Description 3 Year Total
Small arms ammunition manufacturing $719,068,455
Aircraft manufacturing $589,389,184
Construction of new manufacturing structures $563,624,118
Construction of new commercial structures, including farm structures $454,414,899
Scientific research and development services $175,088,961
Wholesale trade $172,666,435
Motor vehicle gasoline engine and engine parts manufacturing $122,865,197
Owner-occupied dwellings $106,125,025
Architectural, engineering, and related services $75,076,408
Wired telecommunications carriers $70,836,318
Real estate $64,638,337
Business support services $56,854,514
Guided missile and space vehicle manufacturing $56,552,719
Breweries $48,531,077
Telephone apparatus manufacturing $41,191,145
All other industrial machinery manufacturing $37,068,091
Retail - Motor vehicle and parts dealers $36,846,120
Broadcast and wireless communications equipment manufacturing $34,302,519
Search, detection, and navigation instruments manufacturing $32,709,956
Monetary authorities and depository credit intermediation $29,771,279
Offices of physicians $28,583,767
Other computer related services, including facilities management $25,518,679
Truck transportation $23,371,468
Limited-service restaurants $22,158,509
Other local government enterprises $21,903,383
Table3
Commissioned by the Chamber of Commerce of Huntsville/Madison CountyJanuary 2016 page | 39
Economic Impacts of Economic Development Announcements 2013-2015
Potential Employment Impacts for Top 25 Sectors
Economic OpportunityIndustry Sector Description 3 Year Total
Construction of new manufacturing structures 7,325
Electroplating, anodizing, and coloring metal 2,025
All other transportation equipment manufacturing 1,702
Business support services 989
Construction of new commercial structures, including farm structures 959
Scientific research and development services 814
Wholesale trade 788
Aircraft manufacturing 595
Employment services 536
Architectural, engineering, and related services 500
Real estate 417
Limited-service restaurants 408
Full-service restaurants 408
Aircraft engine and engine parts manufacturing 300
Retail - Motor vehicle and parts dealers 289
Retail - General merchandise stores 243
Offices of physicians 207
Motor vehicle gasoline engine and engine parts manufacturing 190
Services to buildings 184
Other computer related services, including facilities management 178
Wired telecommunications carriers 161
Truck transportation 160
Retail - Food and beverage stores 150
Monetary authorities and depository credit intermediation 140
Guided missile and space vehicle manufacturing 135
Table4
January 2016 page | 40Commissioned by the Chamber of Commerce of Huntsville/Madison County
Commissioned by the Chamber of Commerce of Huntsville/Madison CountyJanuary 2016 page | 41
Economic Impacts of Economic Development Announcements 2013-2015
V. Impact Data Tables
The economic impact data generated by this analysis, and used to produce the charts are shown
for the region, each county, and each city in the analysis. The impacts are shown separately for
each year’s project announcements. The impacts are based on all projects achieving their total
announced level of operations rather than impacts to be realized in a specific year. Operations
impacts should reoccur annually after all projects reach full operations, but capital investment
impacts will only be realized one-time during the construction/startup period for the projects.
January 2016 page | 42
Econ
omic
Impa
cts of
Econ
omic
Deve
lopm
ent A
nnou
ncem
ents
2013
-201
5
Commissioned by the Chamber of Commerce of Huntsville/Madison County
REGION
Jobs
Payroll
Output
Jobs
Payroll
Output
Jobs
Payroll
Output
Jobs
Payroll
Output
Direct
1,686
$142,925
$480,161
3,591
$346,159
$1,305,061
2,905
$193,725
$1,461,503
8,182
$682,809
$3,246,725
Multip
lier
1,628
$73,841
$214,174
2,929
$130,554
$407,694
2,479
$105,206
$366,599
7,036
$309,601
$988,467
Total O
ps Im
pact
3,314
$216,766
$694,335
6,520
$476,713
$1,712,755
5,384
$298,931
$1,828,102
15,218
$992,410
$4,235,192
Capital Investm
ent
4,073
$206,796
$533,397
3,258
$161,731
$422,836
4,001
$198,595
$505,944
11,332
$567,122
$1,462,177
Sales T
axes
$6,908
$13,879
$9,569
$30,356
Prop
erty Taxes
$4,864
$9,812
$6,178
$20,854
Other Taxes
$218
$444
$324
$986
Cumulative 2013-‐15
2013
2014
2015
MAD
ISON COUNTY
Jobs
Payroll
Output
Jobs
Payroll
Output
Jobs
Payroll
Output
Jobs
Payroll
Output
Direct
1,578
$139,116
$467,135
3,591
$346,159
$1,305,061
509
$37,869
$109,450
5,678
$523,144
$1,881,646
Multip
lier
1,499
$69,183
$195,474
2,649
$117,953
$353,892
1,899
$77,620
$263,553
6,047
$264,756
$812,919
Total O
ps Im
pact
3,077
$208,299
$662,609
6,240
$464,112
$1,658,953
2,408
$115,489
$373,003
11,725
$787,900
$2,694,565
Capital Investm
ent
3,049
$154,791
$404,254
3,194
$158,357
$411,015
986
$44,143
$134,728
7,229
$357,291
$949,997
Sales T
axes
$6,711
$13,569
$9,187
$29,467
Prop
erty Taxes
$4,710
$9,564
$5,944
$20,218
Other Taxes
$212
$433
$312
$957
Cumulative 2013-‐15
2013
2014
2015
Econ
omic
Impa
cts
of A
nnou
ncem
ents
201
3-20
15(T
hous
ands
exc
ept J
obs*
)
*Sho
wn in
2015
Cons
tant
Doll
ars
Tabl
e 5
January 2016 page | 43
Econ
omic
Impa
cts of
Econ
omic
Deve
lopm
ent A
nnou
ncem
ents
2013
-201
5
Commissioned by the Chamber of Commerce of Huntsville/Madison County
Econ
omic
Impa
cts
of A
nnou
ncem
ents
201
3-20
15(T
hous
ands
exc
ept J
obs*
)
*Sho
wn in
2015
Cons
tant
Doll
ars
HUNTSVILLE
Jobs
Payroll
Output
Jobs
Payroll
Output
Jobs
Payroll
Output
Jobs
Payroll
Output
Direct
1,649
$139,788
$469,624
1,912
$184,300
$694,834
2,905
$193,725
$1,461,503
6,466
$517,814
$2,625,960
Multip
lier
823
$37,914
$109,149
1,410
$62,800
$188,417
1,067
$43,612
$150,892
3,300
$144,325
$448,458
Total O
ps Im
pact
2,472
$177,702
$578,772
3,322
$247,100
$883,251
3,972
$237,337
$1,612,395
9,766
$662,139
$3,074,418
Capital Investm
ent
3,529
$174,055
$454,564
1,701
$84,312
$218,830
3,363
$167,266
$418,764
8,592
$425,632
$1,092,159
Sales T
axes
$3,573
$7,224
$4,891
$15,689
Prop
erty Taxes
$2,508
$5,092
$3,165
$10,764
Other Taxes
$113
$231
$166
$510
Cumulative 2013-‐15
2013
2014
2015
MAD
ISON CITY
Jobs
Payroll
Output
Jobs
Payroll
Output
Jobs
Payroll
Output
Jobs
Payroll
Output
Direct
30
$2,543
$8,544
-‐
-‐
-‐
-‐
-‐
-‐
30
$2,543
$8,544
Multip
lier
213
$9,830
$27,829
379
$16,866
$50,602
320
$13,090
$44,446
912
$39,785
$122,877
Total O
ps Im
pact
243
$12,373
$36,373
379
$16,866
$50,602
320
$13,090
$44,446
942
$42,329
$131,420
Capital Investm
ent
145
$7,358
$20,798
112
$5,564
$14,441
133
$5,951
$18,008
390
$18,874
$53,248
Sales T
axes
$926
$1,873
$1,268
$4,068
Prop
erty Taxes
$650
$1,320
$820
$2,791
Other Taxes
$29
$60
$43
$132
Cumulative 2013-‐15
2013
2014
2015
Tabl
e 6
January 2016 page | 44
Econ
omic
Impa
cts of
Econ
omic
Deve
lopm
ent A
nnou
ncem
ents
2013
-201
5
Commissioned by the Chamber of Commerce of Huntsville/Madison County
Econ
omic
Impa
cts
of A
nnou
ncem
ents
201
3-20
15(T
hous
ands
exc
ept J
obs*
)
*Sho
wn in
2015
Cons
tant
Doll
ars
LIMESTO
NE
Jobs
Payroll
Output
Jobs
Payroll
Output
Jobs
Payroll
Output
Jobs
Payroll
Output
Direct
108
$3,809
$13,026
-‐
-‐
-‐
2,396
$155,856
$1,352,053
2,504
$159,665
$1,365,079
Multip
lier
47
$2,028
$9,533
95$4,358
$20,850
421
$20,121
$64,543
563
$26,507
$94,926
Total O
ps Im
pact
155
$5,837
$22,559
95
$4,358
$20,850
2,817
$175,977
$1,416,596
3,067
$186,172
$1,460,005
Capital Investm
ent
971
$49,866
$120,762
19$936
$4,291
2,968
$152,534
$363,768
3,958
$203,336
$488,821
Sales T
axes
$62
$28
$84
$174
Prop
erty Taxes
$48
$23
$1$72
Other Taxes
$2$3
$3$8
ATHE
NS
Jobs
Payroll
Output
Jobs
Payroll
Output
Jobs
Payroll
Output
Jobs
Payroll
Output
Direct
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
$0$0
Multip
lier
25
$1,080
$5,076
51
$2,320
$11,101
224
$10,713
$34,364
300
$14,113
$50,540
Total O
ps Im
pact
25
$1,080
$5,076
51
$2,320
$11,101
224
$10,713
$34,364
300
$14,113
$50,540
Capital Investm
ent
42
$2,160
$6,795
10
$498
$2,285
159
$8,181
$11,590
211
$10,840
$20,669
Sales T
axes
$33
$15
$45
$93
Prop
erty Taxes
$26
$12
$1$38
Other Taxes
$1$2
$2$4
Cumulative 2013-‐15
Cumulative 2013-‐15
2013
2014
2015
2013
2014
2015
Tabl
e 7
January 2016 page | 45
Econ
omic
Impa
cts of
Econ
omic
Deve
lopm
ent A
nnou
ncem
ents
2013
-201
5
Commissioned by the Chamber of Commerce of Huntsville/Madison County
Econ
omic
Impa
cts
of A
nnou
ncem
ents
201
3-20
15(T
hous
ands
exc
ept J
obs*
)
*Sho
wn in
2015
Cons
tant
Doll
ars
MORG
AN
Jobs
Payroll
Output
Jobs
Payroll
Output
Jobs
Payroll
Output
Jobs
Payroll
Output
Direct
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
$0$0
Multip
lier
46
$1,537
$4,919
99$4,488
$17,749
101
$4,962
$27,072
246
$10,987
$49,740
Total O
ps Im
pact
46
$1,537
$4,919
99
$4,488
$17,749
101
$4,962
$27,072
246
$10,987
$49,740
Capital Investm
ent
22
$883
$3,142
17$692
$2,448
20
$779
$2,714
59
$2,354
$8,304
Sales T
axes
$56
$123
$165
$344
Prop
erty Taxes
$43
$95
$127
$265
Other Taxes
$2$4
$5$11
DECA
TUR
Jobs
Payroll
Output
Jobs
Payroll
Output
Jobs
Payroll
Output
Jobs
Payroll
Output
Direct
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
$0$0
Multip
lier
22
$734
$2,350
47
$2,144
$8,480
48
$2,371
$12,934
118
$5,249
$23,763
Total O
ps Im
pact
22
$734
$2,350
47
$2,144
$8,480
48
$2,371
$12,934
118
$5,249
$23,763
Capital Investm
ent
11
$422
$1,501
8
$331
$1,170
10
$372
$1,297
28
$1,125
$3,967
Sales T
axes
$27
$59
$79
$164
Prop
erty Taxes
$21
$45
$61
$127
Other Taxes
$1$2
$2$5
Cumulative 2013-‐15
Cumulative 2013-‐15
2013
2014
2015
2013
2014
2015
Tabl
e 8
January 2016 page | 46
Econ
omic
Impa
cts of
Econ
omic
Deve
lopm
ent A
nnou
ncem
ents
2013
-201
5
Commissioned by the Chamber of Commerce of Huntsville/Madison County
Econ
omic
Impa
cts
of A
nnou
ncem
ents
201
3-20
15(T
hous
ands
exc
ept J
obs*
)
*Sho
wn in
2015
Cons
tant
Doll
ars
MAR
SHAL
LJobs
Payroll
Output
Jobs
Payroll
Output
Jobs
Payroll
Output
Jobs
Payroll
Output
Direct
-‐
-‐
$0$0
Multip
lier
9
$362
$1,493
20$877
$4,002
19
$848
$4,362
48
$2,087
$9,857
Total O
ps Im
pact
9
$362
$1,493
20
$877
$4,002
19
$848
$4,362
48
$2,087
$9,857
Capital Investm
ent
8
$355
$1,585
6$877
$1,248
7
$313
$1,400
21
$1,545
$4,233
Sales T
axes
$39
$61
$60
$160
Prop
erty Taxes
$29
$46
$45
$120
Other Taxes
$1$2
$2$5
Cumulative 2013-‐15
2013
2014
2015
JACK
SON
Jobs
Payroll
Output
Jobs
Payroll
Output
Jobs
Payroll
Output
Jobs
Payroll
Output
Direct
-‐
-‐
$0$0
Multip
lier
15
$402
$1,784
32$1,389
$6,344
21
$985
$4,857
68
$2,776
$12,985
Total O
ps Im
pact
15
$402
$1,784
32
$1,389
$6,344
21
$985
$4,857
68
$2,776
$12,985
Capital Investm
ent
12
$493
$2,212
12$501
$2,440
10
$445
$1,993
34
$1,439
$6,645
Sales T
axes
$22
$45
$45
$112
Prop
erty Taxes
$17
$35
$35
$87
Other Taxes
$1$1
$1$3
Cumulative 2013-‐15
2013
2014
2015
Tabl
e 9
January 2016 page | 47
Econ
omic
Impa
cts of
Econ
omic
Deve
lopm
ent A
nnou
ncem
ents
2013
-201
5
Commissioned by the Chamber of Commerce of Huntsville/Madison County
Econ
omic
Impa
cts
of A
nnou
ncem
ents
201
3-20
15(T
hous
ands
exc
ept J
obs*
)
*Sho
wn in
2015
Cons
tant
Doll
ars
LINCO
LN, TN
Jobs
Payroll
Output
Jobs
Payroll
Output
Jobs
Payroll
Output
Jobs
Payroll
Output
Direct
-‐
$0$0
Multip
lier
12
$329
$971
34$1,489
$4,857
18
$670
$2,212
64
$2,488
$8,040
Total O
ps Im
pact
12
$329
$971
34
$1,489
$4,857
18
$670
$2,212
64
$2,488
$8,040
Capital Investm
ent
11
$408
$1,442
10$368
$1,394
10
$381
$1,341
31
$1,157
$4,177
Sales T
axes
$18
$53
$28
$99
Prop
erty Taxes
$17
$49
$26
$92
Other Taxes
$0$1
$1$2
Cumulative 2013-‐15
2013
2014
2015
Tabl
e10
January 2016 page | 48Commissioned by the Chamber of Commerce of Huntsville/Madison County
Commissioned by the Chamber of Commerce of Huntsville/Madison CountyJanuary 2016 page | 49
Economic Impacts of Economic Development Announcements 2013-2015
VI. Economic Development Project Announcements
The following is a table of economic development announcements by the Chamber of Commerce
of Huntsville/Madison County for the three years, 2013, 2014 and 2015. The contents were
provided by the Chamber.
January 2016 page | 50Commissioned by the Chamber of Commerce of Huntsville/Madison County
January 2016 page | 51
Econ
omic
Impa
cts of
Econ
omic
Deve
lopm
ent A
nnou
ncem
ents
2013
-201
5
Commissioned by the Chamber of Commerce of Huntsville/Madison County
ECONOMIC DEV
ELOPM
ENT AN
NOUNCE
MEN
TS 2013
Capital Invest.
Company
Locatio
n City
Locatio
n Co
unty
Industry
Sector
Implan
Sector
Cap Inv
Implan
Sector
Num
ber
Jobs
Total Capita
l Investment
($000)
Year 1
2014
Year 2
2015
Year 1
2014
Advanced Technical Finish
ing
Huntsville
Madiso
n332813
253
271
25$4,335
25$4,335
AT&T
Huntsville
Madiso
n517110
427
50-‐
50-‐
Brow
n Precision
Inc
Huntsville
Madiso
n336413
359
271
5$3,000
5$3,000
CDS-‐John Blue Co
mpany
Huntsville
Madiso
n333111
262
570
$6,400
0$6,400
Cepeda Systems &
Softw
are An
alysis (CSSA)
Madiso
nMadiso
n541512
452
30-‐
30-‐
Cinram
Huntsville
Madiso
n334614
324
271
14$16,200
14$16,200
Correlated M
agnetics R
esearch LLC
New
Hop
eMadiso
n332999
261
1-‐
1-‐
Crystal M
ountain Water
Huntsville
Madiso
n312112
106
15-‐
15-‐
Currie Systems Inc
Huntsville
Madiso
n323114
154
342
1$100
1$100
Curse, Inc.
Huntsville
Madiso
n541511
451
342
22$800
22$800
Davidson
Technologies, Inc.
Huntsville
Madiso
n541712
456
5790
$5,200
90$5,200
Deloitte LLP
Huntsville
Madiso
n541511
451
1-‐
1-‐
DHS System
s, LLC
Huntsville
Limestone
314912
123
53108
$108,000
108
$108,000
Digium
Inc
Huntsville
Madiso
n334210
304
342
10$200
10$200
DynC
orp International
Huntsville
Madiso
n336411
357
12-‐
12-‐
Fabricated Technologies Inc
Gurle
yMadiso
n332710
249
271
6$200
6$200
Futaba Corpo
ratio
n of America
Huntsville
Madiso
n334412
308
5320
$3,000
20$3,000
GaN Corpo
ratio
nHu
ntsville
Madiso
n334511
315
35-‐
35-‐
GE Aviation
Huntsville
Madiso
n336413
359
5350
$9,600
50$9,600
Harris Co
rporation
Huntsville
Madiso
n334220
305
100
-‐
100
-‐
Jacobs Technology ESTS Group
Huntsville
Madiso
n541330
449
250
-‐
250
-‐
L & L Lum
ber C
ompany Inc
Huntsville
Madiso
n321912
140
10-‐
10-‐
Mitchell Plastics
Huntsville
Madiso
n326199
195
5315
$3,000
15$3,000
nLogic
Huntsville
Madiso
n541511
451
26-‐
26-‐
Orbita
l Sciences C
orpo
ratio
nHu
ntsville
Madiso
n336414
360
5725
$2,500
25$2,500
Palco Telcom
Services
Huntsville
Madiso
n334210
304
342
60$2,000
60$2,000
Parker Hannifin
Corpo
ratio
nHu
ntsville
Madiso
n332919
254
271
0$4,000
0$4,000
Peake H G Co
mpany
Huntsville
Madiso
n323113
154
342
2$50
2$50
PENTA
Research Incorporated
Huntsville
Madiso
n541710
456
5-‐
5-‐
Qualitest
Huntsville
Madiso
n325412
174
530
$42,960
0$42,960
Raytheon
Com
pany
Huntsville
Madiso
n541710
456
100
-‐
100
-‐
Science and Engineering Services (SES)
Huntsville
Madiso
n336611
363
5761
$4,000
61$4,000
Techno
logy Service Corpo
ratio
nHu
ntsville
Madiso
n334511
315
50-‐
50-‐
The Bo
eing Com
pany
Huntsville
Madiso
n541712
456
57350
$6,000
350
$6,000
Torch Techno
logies
Huntsville
Madiso
n541712
456
45-‐
45-‐
Toyota M
otor M
anufacturin
g Alabam
aHu
ntsville
Madiso
n336312
350
530
$150,000
0$150,000
Transomic Technologies
Huntsville
Madiso
n541711
456
2-‐
2-‐
Vector Aerospace
Huntsville
Madiso
n336411
357
5375
$3,000
75$3,000
WaveLink Inc
Huntsville
Madiso
n541712
456
15-‐
15-‐
1,686
$374,545
782
904
$374,545
Employment
Ann
ounc
emen
ts
2013
Tabl
e11
January 2016 page | 52
Econ
omic
Impa
cts of
Econ
omic
Deve
lopm
ent A
nnou
ncem
ents
2013
-201
5
Commissioned by the Chamber of Commerce of Huntsville/Madison County
Ann
ounc
emen
ts
2014
Tabl
e11
ECONOMIC DEV
ELOPM
ENT AN
NOUNCE
MEN
TS 2014
Company
Locatio
n City
Locatio
n Co
unty
Industry
Sector
Implan
Sector
Cap Inv
Implan
Sector
Num
ber
Jobs
Total Capita
l Investment
($000)
Advanced Technical Finish
ing
Huntsville
Madiso
n332813
253
271
-‐
$4,000
AT&T
Huntsville
Madiso
n517110
427
26
-‐
Curse, Inc.
Huntsville
Madiso
n541511
451
30
-‐
Deloitte Co
nsultin
gHu
ntsville
Madiso
n541712
456
5
-‐
GE Intelligent Platforms
Huntsville
Madiso
n335314
335
5750
$2,700
Logicore
Huntsville
Madiso
n541519
453
57122
$8,973
McAllister Too
l and M
achine Inc
Huntsville
Madiso
n332710
249
271
2
$657
Mesker D
oor
Huntsville
Madiso
n332321
240
5340
$6,465
Nektar T
herapeutics
Huntsville
Madiso
n325412
174
535
$2,500
NTS Huntsville Operatio
nHu
ntsville
Madiso
n541380
449
5720
$3,450
ProjectXYZ
Huntsville
Madiso
n541712
456
576
$2,125
Remington Outdoor Com
pany
Huntsville
Madiso
n332994
257
532,000
$110,000
Science and Engineering Services (SES)
Huntsville
Madiso
n336411
357
57450
$70,000
Straight to
Ale, LLC
Huntsville
Madiso
n312120
108
5746
$2,860
Toyota M
otor M
anufacturin
g Alabam
aHu
ntsville
Madiso
n336310
350
53189
$121,420
Verizon
Wire
less
Huntsville
Madiso
n561422
465
300
-‐
West Teleservices
Huntsville
Madiso
n561422
465
300
-‐
3,591
$335,150
January 2016 page | 53
Econ
omic
Impa
cts of
Econ
omic
Deve
lopm
ent A
nnou
ncem
ents
2013
-201
5
Commissioned by the Chamber of Commerce of Huntsville/Madison County
ECO
NO
MIC
DEV
ELO
PMEN
T AN
NO
UN
CEM
ENTS
201
4
Com
pany
Year
1
2015
Year
2
2016
Year
3
2017
Year
4
2018
Year
5
2019
Year
6
2020
Year
7
2021
Year
8
2022
Year
1
20
15Ye
ar 2
2016
Year
3
20
17Ye
ar 4
2018
Year
5
20
19Ye
ar 6
2020
Year
7
20
21Ye
ar 8
20
22Ye
ar 9
2023
Year
10
2024
Adva
nced
Tec
hnic
al F
inish
ing
-‐
$4
,000
AT&
T26
-‐
Curs
e, In
c.22
8-‐
De
loitt
e Co
nsul
ting
5-‐
GE
Inte
llige
nt P
latf
orm
s15
305
$2,7
00Lo
gico
re44
4830
$8,9
73M
cAlli
ster
Too
l and
Mac
hine
Inc
2$6
57M
eske
r Doo
r20
1010
$6,4
65N
ekta
r The
rape
utic
s5
$2,5
00N
TS H
unts
ville
Ope
ratio
n20
$3,4
50Pr
ojec
tXYZ
21
3$2
,125
Rem
ingt
on O
utdo
or C
ompa
ny28
040
033
824
024
020
017
013
2$3
9,90
0$2
2,50
0$8
,500
$3,5
00$3
,500
$3,5
00$3
,500
$3,5
00$3
,500
$18,
100
Scie
nce
and
Engi
neer
ing
Serv
ices
(SES
)15
015
015
0$7
0,00
0St
raig
ht to
Ale
, LLC
1215
910
$2,8
60To
yota
Mot
or M
anuf
actu
ring
Alab
ama
1477
98$1
21,4
20Ve
rizon
Wire
less
300
-‐
Wes
t Tel
eser
vice
s30
0-‐
1,
217
58
9
54
5
34
8
39
0
20
0
17
0
13
2
$2
65,0
50$2
2,50
0$8
,500
$3,5
00$3
,500
$3,5
00$3
,500
$3,5
00$3
,500
$18,
100
Empl
oym
ent
Capi
tal I
nves
tmen
t
January 2016 page | 54
Econ
omic
Impa
cts of
Econ
omic
Deve
lopm
ent A
nnou
ncem
ents
2013
-201
5
Commissioned by the Chamber of Commerce of Huntsville/Madison County
Ann
ounc
emen
ts
2015
Tabl
e11
ECONOMIC DEV
ELOPM
ENT AN
NOUNCE
MEN
TS 201
5
Compa
nyLo
catio
n City
Loca
tion
Coun
tyIndu
stry
Sector
Implan
Se
ctor
Cap Inv
Implan
Se
ctor
Num
ber
Jobs
Total C
apita
l Inve
stmen
t ($00
0)Ad
vanc
ed Aeros
pace
Too
ling, In
c.Hu
ntsville
Mad
ison
3335
1728
127
18
$262
AZ Tec
hnolog
yHu
ntsville
Mad
ison
3255
1017
757
$1,850
GE Aviation
Huntsville
Limestone
3364
1235
853
300
$200
,000
Lockhe
ed M
artin
Huntsville
Mad
ison
3364
1436
010
0
$0McA
lister T
ool &
Mac
hine
Huntsville
Mad
ison
3327
1024
927
121
$3,626
Polaris
Huntsville
Limestone
3369
9936
753
2,00
0
$142
,000
Polaris
Wareh
ouse
Huntsville
Limestone
3369
9935
853
96
$12,87
0Ridg
eview In
dustrie
sHu
ntsville
Mad
ison
3363
7035
553
10
$3,300
Rocket Rep
ublic Brewing Co
mpa
nyMad
ison
Mad
ison
3121
2010
853
$500
Torch Te
chno
logies
Huntsville
Mad
ison
5417
456
5715
0
$15,00
0Ve
rizon
Wire
less
Huntsville
Mad
ison
5614
2246
520
0
$0Ye
llowha
mmer
Huntsville
Mad
ison
3121
2010
853
20
$2,000
2,90
5
$381
,407
January 2016 page | 55
Econ
omic
Impa
cts of
Econ
omic
Deve
lopm
ent A
nnou
ncem
ents
2013
-201
5
Commissioned by the Chamber of Commerce of Huntsville/Madison County
ECONOMIC DEVELOPMENT ANNOUNCEMENTS 2015
Company
Year 1
2016
Year 2
2017
Year 3
2018
Year 4
2019
Year 5
2020
Year 6
2021
Year 7
2022
Year 8
2023
Year 1
2016
Year 2
2017
Year 3
2018
Year 4
2019
Advanced Aerospace Tooling, Inc.
5
21
$262
AZ Technology
0$1,850
GE Aviation
117
448
2965
37$136,000
$64,000
Lockheed Martin
100
$0McAlister Tool & Machine
174
$3,626
Polaris
827
639
534
0$142,000
Polaris Warehouse
4947
$12,870
Ridgeview Industries
10$3,300
Rocket Republic Brewing Company
0$500
Torch Technologies
100
1040
$15,000
Verizon Wireless
200
$0Yellowhammer
20$2,000
1,328
702
692
4
48
29
65
37
$181,407
-‐
$136,000
$64,000
Capital Investment
Employment
January 2016 page | 56Commissioned by the Chamber of Commerce of Huntsville/Madison County
Commissioned by the Chamber of Commerce of Huntsville/Madison CountyJanuary 2016 page | 57
Economic Impacts of Economic Development Announcements 2013-2015
VII. Economic Impact Analysis
The following is the schematic diagram of the Economic Impact
Analysis process utilized for this study.
January 2016 page | 58
Econ
omic
Impa
cts of
Econ
omic
Deve
lopm
ent A
nnou
ncem
ents
2013
-201
5
Commissioned by the Chamber of Commerce of Huntsville/Madison County
CoC
Announce-‐
ments
Jobs &
Investments
by Sector b
y County
Impact by
County
Project
Distri-‐
butio
nModel
Regional
Econom
ic
Model*
Impact on
Region
Impact
Madison
County
Impact
Limestone
County
Impact
Marshall
County
Impact
Morgan
County
Impact
Jackson
County
Impact
Lincoln
County
Impacts
Huntsville
City
Impacts
Madison
City
Impacts
Athens City
Impacts
Decatur
City
Impact
Allocatio
ns(Employment)
Impact
Allocatio
ns(Employment)
Impact
Allocatio
ns(Employment)
E
cono
mic
Impa
ct P
roce
ss M
odel
Tabl
e 9
* Reg
iona
l Eco
nom
ic M
odel
IMPL
AN M
RIO
mod
el is
used
for t
he ca
lculat
ions.
The d
irect
impa
cts ar
e con
sider
ed to
have
occu
rred i
n the
coun
ty/ci
ty
of th
e site
. Pro
ject I
mpa
cts lo
cate
d in L
imes
tone
Coun
ty a
re
calcu
lated
using
Mad
ison C
ount
y mult
iplier
s.
Commissioned by the Chamber of Commerce of Huntsville/Madison CountyJanuary 2016 page | 59
Economic Impacts of Economic Development Announcements 2013-2015
VIII. Key Assumptions Used in this Analysis
• All announcement data was provided by the Chamber of Commerce of Huntsville/Madison County.
• The region is comprised of Madison, Limestone, Morgan, Marshall, and Jackson counties in Alabama plus Lincoln County in Tennessee.
• New jobs will result in a net increase in employment in the area.
• Capital investment for building, and equipment will be completed in the year after announcement unless otherwise stated.
• The IMPLAN Multi-Regional Input-Output (MRIO) economic model was used for the impact calculations.
• Madison County was the location for all announced industry projects. Projects locating in Huntsville-Limestone county were calculated separately and added to the results.
• Impacts by county were estimated by the IMPLAN economic model.
• Impacts by city were estimated with consideration for location city, and allocation of county impacts based on employment levels in each city and county.
• Tax impact estimates by county were calculated by the IMPLAN model.
• Tax impacts by city were estimated based on relative sales and property tax rates.
• The economic impact calculations are significantly influenced by current economic composition in the region, and may underrepresent industries new to the area.
January 2016 page | 60Commissioned by the Chamber of Commerce of Huntsville/Madison County
Economic Impact Analysis Caution
Economic impact estimation, and analysis has been performed for many years. While the tools and methodologies are better today, users should understand that the calculations produce estimates to represent the magnitude of impact rather than exact amounts. The assumptions used to construct, and run economic models directly influence the calculations, and should not be overlooked in their importance. Generally as the geographic region becomes smaller, the more difficult it becomes to estimate impacts due to unique characteristics that may be significant in the smaller region, e.g. city, but less significant in a larger region, e.g., state. Finally, economic models often described by the resulting multipliers are heavily influenced by past economic relationships, and may not sufficiently represent an economic area experiencing dramatic changes.
Economic Modeling
The IMPLAN model was used for this economic impact analysis. Details of IMPLAN may be obtained at:
IMPLAN Group LLC IMPLAN System (data and software)16905 Northcross Dr., Suite 120Huntersville, NC 28078
www.IMPLAN.com
Commissioned by the Chamber of Commerce of Huntsville/Madison CountyJanuary 2016 page | 61
Economic Impacts of Economic Development Announcements 2013-2015
IX. Industry Sectors
The projects announced in 2013, 2014, and 2015 were classified into one or more of the
following industry sectors for this impact analysis. Note all sectors are not relevant for each
year’s announced projects, but all of the sectors shown were used for at least one project in at
least one year of analysis date range. The sectors were identified based on the NAICS code noted
by the Chamber of Commerce of Huntsville/Madison County for each project, and translated
to IMPLAN Sectors by UAH. For projects operating in totally new industry sectors, the closest,
higher level of sector category was used for categorizing the project data.
January 2016 page | 62Commissioned by the Chamber of Commerce of Huntsville/Madison County
NAICS Code Industry Sector
53 Construction of manufacturing Structures 57 Construction of Commercial Structures 106 Bottled and canned soft drinks & water 108 Breweries 123 All other textile product mills 140 Cut stock, resawing lumber, and planing 154 Printing 174 Pharmaceutical preparation manufacturing 177 Paint and coating manufacturing 195 Other plastics product manufacturing 240 Metal window and door manufacturing 249 Machine shops 253 Electroplating, anodizing, and coloring metal 254 Valve and fittings other than plumbing 257 Small arms ammunition manufacturing 261 Other fabricated metal manufacturing 262 Farm machinery and equipment manufacturing 271 Other Industrial Machinery Manufacturing 281 Machine tool manufacturing 304 Telephone apparatus manufacturing 305 Broadcast and wireless communications equipment 308 Bare printed circuit board manufacturing 315 Search, detection, and navigation instruments manufacturing 324 Software and other prerecorded and record reproducing 335 Relay and industrial control manufacturing 342 Other Misc. Electrical Equipment & Computer manufacturing 350 Motor vehicle gasoline engine and engine parts manufacturing 355 Motor vehicle metal stamping 357 Aircraft manufacturing 358 Aircraft engine and engine parts manufacturing 359 Other aircraft parts and auxiliary equipment manufacturing 360 Guided missile and space vehicle manufacturing 363 Ship building and repairing 367 All other transportation equipment manufacturing 427 Wireless telecommunications carriers (except satellite) 449 Architectural, engineering, and related services 451 Custom computer programming services 452 Computer systems design services 453 Other computer related services, including facilities management 456 Scientific research and development services 465 Business support services
Commissioned by the Chamber of Commerce of Huntsville/Madison CountyJanuary 2016 page | 63
Economic Impacts of Economic Development Announcements 2013-2015
APPENDIX
The announced projects within the Jetplex Industrial Park, located adjacent to the Huntsville International Airport, were used to extract impacts from the regional analysis. The estimated impacts for the three projects listed on page 41 are shown in Table 14, and Figure 17. Note that the impacts are estimated based on only the operations of these specific projects, and do not include impacts from other announced projects in the region. This isolation of Jetplex-located projects may not include additional economic activity that could occur with the other new/expanded projects announced.
Total impact for employment, output, labor income, and taxes for the projects located in the Jetplex Industrial Park are shown in Table 14, and Figure 17. The total employment impact is 3,746 operations jobs, and 1,156 in capital investment related jobs. The total economic output is approximately $1.1 billion. Annual Labor income impact is $369 million. The total impact on local taxes is $13.5 million. The impacts on the region for the fully implemented Economic Development Announcements include:
• $966 million annual expansion of the region’s economy
• 3,746 operations related jobs
• $159 million impact from capital investments
• 1,156 capital investment related jobs
• $314 million in annual payroll
• $55 million in capital investment related payroll
• $13.5 million increase in local taxes
Jetplex Industrial Park Projects Impact
January 2016 page | 64Commissioned by the Chamber of Commerce of Huntsville/Madison County
Economic Impacts of Jetplex Industrial Park Announcements 2013-2015(Thousands except Jobs*)
Table14
JETPLEX IND PARK Jobs Payroll OutputDirect 2,020 $237,550 $723,434Multiplier 1,726 $76,452 $243,267Total Ops Impact 3,746 $314,002 $966,701
Capital Investment 1,156 $55,060 $159,034Sales Taxes $8,571Property Taxes $4,638Other Taxes $274
2013-2015
*Shown in Constant Dollars
January 2016 page | 65Commissioned by the Chamber of Commerce of Huntsville/Madison County
Addendum - Impacts of Jetplex Industrial Park Projects
Figure17
*Shown in 2015 Constant Dollars
January 2016 page | 66
Econ
omic
Impa
cts of
Econ
omic
Deve
lopm
ent A
nnou
ncem
ents
2013
-201
5
Commissioned by the Chamber of Commerce of Huntsville/Madison County
Company
Year 1
2014
Year 2
2015
Year 3
2016
Year 4
2017
Year 5
2018
Year 6
2019
Year 7
2020
Year 8
2021
Year 9
2022
CDS-‐John Blue Co
mpany
0Futaba Corpo
ratio
n of America
20Re
mington
Outdo
or Com
pany
280
400
338
240
240
200
170
132
-‐
300
400
338
240
240
200
170
132
Employment
Capital Inv
estm
ent
Compa
nyYe
ar 1 201
4Ye
ar 2
2015
Year 3
2016
Year 4
2017
Year 5
2018
Year 6
2019
Year 7
2020
Year 8
2021
Year 9
2022
Year 10
2023
Year 11
2024
CDS-‐John
Blue Co
mpa
ny$6
,400
Futaba
Corpo
ratio
n of America
$3,000
Remington
Outdo
or Com
pany
$39,90
0$2
2,50
0$8
,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$18,10
0$9
,400
39,900
22,500
8,50
0
3,50
0
3,50
0
3,50
0
3,50
0
3,50
0
3,50
0
18,100
Com
pany
Anno
unce
Ye
arLo
catio
n Ci
tyLo
catio
n Co
unty
Indu
stry
Se
ctor
Impl
an
Sect
orSe
ctor
Cap
Inv
Impl
an
Sect
orNum
ber J
obs
Tota
l Cap
ital
Inve
stm
ent
($00
0)To
tal C
apita
l In
vest
men
tCD
S-‐Jo
hn B
lue
Com
pany
2013
Hunt
sville
Mad
ison
3331
1126
230
57-‐
$6,4
00$6
,400
,000
Futa
ba C
orpo
ratio
n of
Am
erica
2013
Hunt
sville
Mad
ison
3344
1230
830
5320
$3,0
00$3
,000
,000
Rem
ingt
on O
utdo
or C
ompa
ny20
14Hu
ntsv
ille
Mad
ison
3329
9425
730
532,
000
$1
10,0
00$1
10,0
00,0
002,
020
$1
19,4
00$1
19,4
00,0
00
Jet
plex
Indu
stri
al P
ark
Ann
ounc
emen
ts 2
013-
2015
(Tho
usan
ds e
xcep
t Job
s*)
*Sho
wn in
2015
Cons
tant
Doll
ars
Tabl
e15
Commissioned by the Chamber of Commerce of Huntsville/Madison CountyJanuary 2016 page | 67
Economic Impacts of Economic Development Announcements 2013-2015
The economic analysis was performed for the Chamber of Commerce of Huntsville/Madison County by:
The Center for Management & Economic Research
College of Business Administration
University of Alabama in Huntsville
ResearchersBrinda Mahalingam, Ph .D ., Economist
Jeff Thompson, Project DirectorKaren Yarbrough, Editor
Questions regarding the analysis and report should be directed to:
Jeff Thompson, Project Director256 .361 .9065
jeff .thompson@uah .edu
Chamber of Commerce of Huntsville/Madison County225 Church Street NW, Huntsville, AL 35801256-535-2000 • hsvchamber.org
256-824-5326 • uahcmer.com