economic impacts of the economic development announcements

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



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)



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


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



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



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.


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



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.


Figure3



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.


Figure4



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.


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



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.



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


• $787.9 million in annual payroll

• $357.3 million in capital investment related payroll

• $50.6 million increase in local taxes


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




LimestoneCounty

The economic impacts on Limestone County by the fully implemented Economic Development Announcements made in 2013, 2014, and 2015 are estimated at:





• $186 million in annual payroll

• $203 million in capital investment related payroll

• $254,000 increase in local taxes


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




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


• 59 capital investment related jobs





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




MarshallCounty

The estimated impacts on Marshall County by the fully implemented Economic Development Announcements are:









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




JacksonCounty

The estimated impacts on Jackson County by the fully implemented Economic Development Announcements made in 2013, 2014, and 2015 are:









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




LincolnCounty, TN

The estimated impacts on Lincoln County, Tennessee by the fully implemented Economic Development Announcements made in 2013, 2014, and 2015 are:









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




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.



City of Huntsville

Estimated impacts on the City of Huntsville by the fully implemented Economic Development Announcements of 2013, 2014, and 2015 are:



• $1.1 billion impact from capital investments




• $27 million increase in local taxes


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




City of Madison

The estimated impacts on Madison City from the fully implemented Economic Development Announcements are:







• $7 million increase in local taxes


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




City of Athens

The estimated impacts on the City of Athens by the fully implemented Economic Development Announcements in 2013, 2014, and 2015 are:









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




City of Decatur

The impacts on the City of Decatur by the fully implemented Economic Development Announcements in 2013, 2014, and 2015 include:









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




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.



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



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



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


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


Econ

omic

Impa

cts of

Econ

omic

Deve

lopm

ent A

nnou

ncem

ents

2013

-201

5


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


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


2013

2014

2015

Tabl

e 6


Econ

omic

Impa

cts of

Econ

omic

Deve

lopm

ent A

nnou

ncem

ents

2013

-201

5


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



2013

2014

2015

2013

2014

2015

Tabl

e 7


Econ

omic

Impa

cts of

Econ

omic

Deve

lopm

ent A

nnou

ncem

ents

2013

-201

5


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



2013

2014

2015

2013

2014

2015

Tabl

e 8


Econ

omic

Impa

cts of

Econ

omic

Deve

lopm

ent A

nnou

ncem

ents

2013

-201

5


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


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


2013

2014

2015

Tabl

e 9


Econ

omic

Impa

cts of

Econ

omic

Deve

lopm

ent A

nnou

ncem

ents

2013

-201

5


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


2013

2014

2015

Tabl

e10



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.


Econ

omic

Impa

cts of

Econ

omic

Deve

lopm

ent A

nnou

ncem

ents

2013

-201

5


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


Econ

omic

Impa

cts of

Econ

omic

Deve

lopm

ent A

nnou

ncem

ents

2013

-201

5


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


Econ

omic

Impa

cts of

Econ

omic

Deve

lopm

ent A

nnou

ncem

ents

2013

-201

5


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


Econ

omic

Impa

cts of

Econ

omic

Deve

lopm

ent A

nnou

ncem

ents

2013

-201

5


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


Econ

omic

Impa

cts of

Econ

omic

Deve

lopm

ent A

nnou

ncem

ents

2013

-201

5


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



VII. Economic Impact Analysis

The following is the schematic diagram of the Economic Impact

Analysis process utilized for this study.


Econ

omic

Impa

cts of

Econ

omic

Deve

lopm

ent A

nnou

ncem

ents

2013

-201

5


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.



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.


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



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.


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



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:







• $13.5 million increase in local taxes

Jetplex Industrial Park Projects Impact


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


Addendum - Impacts of Jetplex Industrial Park Projects

Figure17



Econ

omic

Impa

cts of

Econ

omic

Deve

lopm

ent A

nnou

ncem

ents

2013

-201

5


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



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

economic impacts of the economic development announcements

Documents