Keeping you informed and inspired. VOLUME 3 • ISSUE 9
September 2020
RETAIL
COVER STORY
Alabama Goods: Distinctive Food and Gifts Made in Alabama
What’s so unique about Alabama Goods is the merchandise they carry. It’s all handmade by Alabama artisans. By Lori J. Connors - Page 2
AUTOMOTIVE
Mazda Toyota Manufacturing Makes $830M Investment for Technology, Training Programs
Mazda Toyota Manufacturing is providing an additional $830 million investment to incorporate more cutting-edge manufacturing technologies to its production lines and provide enhanced training to its workforce of up to 4,000 employees. By Bud McLaughlin - Page 10
ADDITIONAL STORIES • 33 Huntsville-Area Businesses on Inc. 5000 List of Fastest-Growing Private Companies Page 5
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Renaissance on Meridian Street Brings New Business, Attitude By Mike Easterling • Page 6
• HudsonAlpha ENCODE Offers Insight into Our DNA By Lori J. Connors • Page 11
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HUNTSVILLE
BUSINESS JOURNAL Vol 3, Issue 9 September 2020 600 Boulevard South Suite 104 Huntsville, AL 35802
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Huntsville BUSINESS JOURNAL
RETAIL
Alabama Goods: Distinctive Food and Gifts Made in Alabama When looking for the perfect gift or gift basket, look no further. Homewood-based Alabama Goods has expanded northward to the Valley Bend shopping center, next to Fleet Feet. “We’ve been wanting to open a location in Huntsville for a couple of years,” said owner Sherry Hartley. “We would go to Huntsville and ride around, looking for the right spot. When we found this one, we just thought it was a good match for the customer base that will be shopping there.” What’s so unique about Alabama Goods is the merchandise they carry. It’s all handmade by Alabama artisans. Alabama Goods got its start in 2008 when Hartley and her business partner Beth Staula teamed up to create their online corporate gift basket business. While serving on a committee with the Birmingham Chamber of Commerce, Hartley and Staula
discussed potential business opportunities. Staula had been in the business of corporate baskets and Hartley was in website development. So, the pair began their business venture as a website and a corporate gift company. There’s a lot of thought that goes into assembling the perfect corporate gift basket. “Our main thing is that we want our customer, the company to look good,” said Hartley. “We put together pottery, food, all types of gifts. We will put together gift concepts that are not just gourmet foods. We will put together a pottery item and a food item. A lot of times, it’s going to be artwork, a wide variety of things for companies.” When Hartley and Staula were looking for vendors, they often would come across awesome products that were just not quite “corporate material.” “We kept finding these really cool
items from Alabama but didn’t really qualify to be on the website,” said Hartley. That’s when they decided to open a store. “We opened the Homewood store eight years ago and doubled our space three years ago,” said Hartley. “We decided that we need to be somewhere else in Alabama. I was reading articles all the time about the growth of Huntsville and that’s why Huntsville had been on my radar.”
By Lori J. Connors / Photo by Steve Babin
Along with assorted gift baskets, Alabama Goods boasts one of the largest selections of Alabama-made pottery. The merchandise in the store is highly curated before it reaches the sales floor. Hartley and Staula search far and wide throughout the state for just the right art, jewelry, pottery, crafts, and food items. “We have so much talent in Alabama,” Hartley said. “it’s just a matter of finding it.” n
September 2020
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RETAIL
The Gun Sales of Madison County: A Booming Business 2020 might well be referred to as “The Year of the Firearm.” Amid the uncertainty brought on by a pandemic coupled with civil unrest, gun sales have been on a steep, upward trajectory. Firearm sales took off like a rocket with the arrival of COVID-19 in early March. Just in the first seven months of 2020, approximately 19 million firearms have been sold in the United States. Although background checks are key indicators of firearm sales, they also can encompass sales of multiple firearms. The months with the highest number of background checks have been June at 3.9 million, March at 3.7 million, and July at 3.6 million. The FBI began keeping statistics on background checks in 1998. What is especially noteworthy about this year’s gun buyers is the high percentage of first-time owners. According to the National Shooting Sports Foundation, it is estimated that 40 percent of those purchasing firearms
are first-time buyers. “People want to defend their homes, their communities,” said Melanie Hammer Murray, owner of Bullet and Barrel in Huntsville. “There are so many layers to this onion.” In a “normal” year, there is a regular pattern of gun purchasing, one that peaks around the holidays and drops off around January and February, then May and June, and once again in August and September. It is also a common trend for gun sales to rise during presidential election years. “Gun sales follow a four-year cycle,” said Russ Durling, owner of Last Resort Guns in Madison. “In July-August 2019, we were just at the three-year point and gun sales were really bad.”
This election year’s gun sales have been unusually high largely due to COVID-19, a highly contentious political divide, and the heated uprisings over racial inequality and police brutality. “We expect to be quiet in January and February,” said Durling. “Then, COVID arrives and people got really panicky. There was a big surge in gun purchases, we were selling quite a lot of guns. It was quiet on the gun range during April and May; then the rioting started, and people just went crazy again.” Although there has been a significant uptick in new gun ownership, the market is fraught with supply chain issues. “The big challenge for all firearm stores is that there is not enough ammo
By Lori Connors / Photos by Steve Babin or firearms,” said Murray. Not only are raw materials and components harder to come by, COVID has completely changed up the production dynamics. Social distancing on the production line means staggered shifts, fewer employees, and far less production. This has resulted in the “perfect storm” of raw material storages and reduced firearm production, which comes with its own set of consequences. “The production line was broken, COVID messed up the supply chain,” said Durling. “No supply, that induces panic buying. There was an ammunition shortage and people were hoarding. It’s a big problem – burgeoning demand and no supply.” While there has a been a huge boom on firearm and ammo sales this year, Durling speculates that by next summer, business will be quite different. “There’s lot of people that are going to be saddled with guns and ammo that they didn’t really want and they won’t be buying any in the future.” n
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Huntsville BUSINESS JOURNAL
Subsidiary of EVENT Publishing
President /Publisher................................................................ Todd Stephenson Editor .......................................................................................... Bud McLaughlin Writers.........................................................................................Kimberly Ballard Lori J. Connors Mike Easterling Graphic Design ............................................................................. Justina Simon Website................................................................................................ Jim Gharib Photographers...................................................................................Steve Babin Kimberly Ballard Eric Schultz Justina Simon Director of Sales ................................................................. Carolyn Stephenson Account Executives.................................................................... Amanda Peach Michelle Epling Distribution......................................................................................Glenda Mace Huntsville Business Journal is published monthly by EVENT Publishing,
PO Box 14219, Huntsville, AL 35815. For advertising information call 256.533.8078, e-mail todd@eventhuntsville.com, or visit us on the web at www.huntsvillebusinessjournal.com For editorial information contact editor@huntsvillebusinessjournal.com ALL CONTENTS ©2020. ALL RIGHTS RESERVED. REPRODUCTION OR USE IN WHOLE OR IN PART OF THE CONTENTS WITHOUT THE PRIOR WRITTEN PERMISSION OF THE PUBLISHER IS PROHIBITED. HUNTSVILLE BUSINESS JOURNAL IS A REGISTERED TRADEMARK OF EVENT PUBLISHING. ALL RIGHTS RESERVED. UNSOLICITED PHOTOGRAPHS OR ARTICLES ARE SUBMITTED AT THE RISK OF THE PHOTOGRAPHER OR AUTHOR. EVENT PUBLISHING ASSUMES NO LIABILITY FOR THE RETURN OF ANY UNSOLICITED MATERIALS AND MAY USE THEM AT ITS DISCRETION.
September 2020
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SMALL BUSINESS
33 Huntsvillle-Area Businesses on Inc. 5000 List of Fastest-Growing Private Companies To say that the Huntsville area is a hotbed of successful small businesses is an understatement. Some 30-plus companies have been named to the Inc. 5000 Fastest Growing Private Companies in America. Visit https://www.inc.com/inc5000/2020 The businesses range from the unsurprising government services and engineering categories to manufacturing, real estate, financial services and food and beverage. Redline Steel, which is based in Tanner in east Limestone County, was the highest ranked among the local and state companies on the annual list by Inc. magazine. The manufacturing company comes in at No. 110 with a growth of 3,215 percent over last year. Started by military veteran Colin Wayne, Redline Steel is the nation’s largest steel monogram company and is the No. 4 ranked manufacturing company on the Inc. 5000 list. Here is the list of Huntsville-area businesses on the Inc. 5000 with their
ranking, percentage of growth over last year, industry and location. Huntsville area Inc. 5000 Fastest Growing Private Companies 110 Redline Steel, 3,215%, Manufacturing, Tanner 981 Aleta Technologies, 470%, Security, Huntsville 1,139 Cintel, 397%, Government Services, Huntsville 1,340 Shearer & Associates, 332%, Engineering, Huntsville 1,423 Crossflow Technologies, 312%, Government Services, Huntsville 1,585 Freedom Real Estate & Capital, 273%, Real Estate, Huntsville 1,890 Linc Research, 223%, Engi-
neering, Huntsville 1,896 Hill Technical Solutions, 222%, Engineering, Huntsville 1,986 R2C, 213%, Government Services, Huntsville 2,136 Matt Curtis Real Estate, 196%, Real Estate, Madison 2,338 EngeniusMicro, 179%, Government Services, Huntsville 2,344 Cortina Solutions, 178%, Government Services, Huntsville 2,347 Simulation Technologies, 177%, Government Services, Huntsville 2,401 Corporate Tax Advisors, 173%, Financial Services, Huntsville 2,417 Integration Innovation (i3), 171%, Government Services, Huntsville 2,426 MartinFederal, 170%, Government Services, Huntsville 2,483 nou Systems, 166%, Government Services, Huntsville 2,580 Summit 7 Systems, 159%, IT System Development, Huntsville 2,766 IronMountain Solutions, 145%, Government Services, Huntsville 3,002 Hometown Lenders, 131%, Financial Services, Huntsville
3,382 Noetic Strategies, 111%, IT Management, Huntsville 3,404 Cornerstone Detention Products, 110%, Construction, Tanner 3,419 3-GIS, 109%, Telecommunications, Decatur 3,464 Trideum Corp., 108%, Government Services, Huntsville 3,536 Sentar, 104%, Government Services, Huntsville 3,898 Bevilacqua Research Corp., 91%, Government Services, Huntsville 4,198 WordSouth, 80%, Advertising and Marketing, Rainsville 4,221 Mission Driven Research, 80%, Government Services, Huntsville 4,313 Torch Technologies, 77%, Government Services, Huntsville 4,397 Monte Sano Research Corp., 74%, Government Services, Huntsville 4,464 nLogic, 72%, Government Services, Huntsville 4,501 CFD Research Corp., 71%, Government Services, Huntsville 4,929 Yellowhammer Brewing, 56%, Food & Beverage, Huntsville n
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Huntsville BUSINESS JOURNAL
DEVELOPMENT
Renaissance on Meridian Street Brings New Business, Attitude Downtown Huntsville continues to grow, not just upward, as all of the cranes creating the skyline would suggest, but outward as well. One evolving area of growth is north of the city’s center down Meridian Street, where entrenched tenants Brooks & Collier are getting some new business neighbors down the street from its location near Pratt Avenue and the I-565 interchange. Holtz Leather Company and Preservation Company are in the old Lincoln Mill Commissary. L’Etoile, a French bakery, is a recent move-in and is taking online orders as it prepares for a fall grand opening. Meanwhile, Greg Brooks of the longtime family-owned Brooks & Collier said the new establishments, and rumors that many more changes to improve the area are in the works, have already attracted new customers. “I can tell a lot of the younger crowd, I guess millennials is better, right, are coming in,’’ said Brooks, whose grandfather T.E. Brooks and partner Ernest Collier founded the store as a Feed and Seed in downtown Huntsville in 1946. “That’s a good sign. Half the people who come in now we don’t even know and I’m used to everybody coming in we would know.’’ Brooks & Collier, which has evolved from selling products to farmers to a cosmopolitan shop carrying a variety of items from patio and indoor furniture and hardscapes to grills, has purchased property across the street from its location for a to-be-deter-
mined development. Meanwhile, Holtz Leather Company moved into a multilevel store at Lincoln Mill four years ago where the production facility is on-site. The company was founded by childhood friends and the now-married team of Rick and Coleen Holtz. According to developer Crunkleton Commercial Real Estate Group, the shop offers product lines covering items for men, women, home and office, corporate gifts and even guitar accessories. Holtz also has a large selection of home accents, pens, pottery, hats, and candles. “We’ve been primarily e-commerce before opening this retail store and still probably 90 percent of our sales come from online,’’ said Becka Christian, the company’s vice president. “But we’ve been really, really impressed with how the retail store has done. “When we first opened we honestly thought, ‘If it just pays the rent
that would be awesome. That’s all we need.’ It’s far exceeded that, which has been really exciting.’’ Preservation Company opened next door to Holtz Leather in 2017 by owners Jason and Christa Butler. Crunkleton describes it as, “Huntsville’s home for historic architecture,’’ and offers “unusually uncommon inventory that blends old and new design.’’ In keeping with the family vibe of Meridian Street, former Army officer Kevin Zurmuehlan and his wife Kristen moved in at Lincoln Mill and have a storefront grand opening for L’Etoile planned for October.
By Mike Easterling / Photos by Eric Schultz “We’re really excited about that,’’ Christian said. “They did a test taste and it was very good.’’ While Brooks wouldn’t reveal details that were discussed at a recent meeting with city planners, he did say they should inject even more vibrance into the area. However, things have already been on the upswing despite the pandemic. “I hate to say it,’’ he said, “but it’s the best year we’ve ever had. I think it’s part of the staying at home thing. People are working in the yard and the patio, grilling out a lot. We’ve been out of charcoal for close to a month. “That’s part of the people hanging out and not going to a restaurant.’’ Who knows what continued improvements could bring to the current and future stores along Meridian Street in one of the oldest neighborhoods in town? n
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DEVELOPMENT
Hollingsworth Breaks Ground on Region’s Largest Spec Industrial Facility All it takes is a mission and a vision for Huntsville’s long-term strategic plan to build a multi-county regional economy in North Alabama to take shape. One of the components of that vision dropped into place as the Huntsville-Madison County Chamber of Commerce and the Limestone County Economic Development Authority joined the Hollingsworth Cos. in breaking ground on the largest speculative industrial facility in North Alabama. It is the 11th facility Hollingsworth has built in the SouthPoint Business Park, which has already provided hundreds of jobs and millions of dollars in investments. When finished, the new building will be home to more than 1.9 million square feet of industrial space. Located off Interstates 65 and 565 and five miles from the Mazda Toyota Manufacturing plant, the park is suitable for high-growth manufacturing and distribution companies who benefit from a location along the I-65 corridor in North Alabama. SouthPoint Business Park is already home to HDT Global, Custom Assembly, Redline Steel, Woodbridge, Supreme Beverage and Aldez. While shovels moved dirt for the sprawling new building, local and state officials and members of the business community toured two industrial buildings now available in the park. The two buildings provide 173,888 and 109,080 square feet for companies looking to expand or relocate their manufacturing and distribution facilities. “In spite of the economic pres-
sure of COVID-19 and this being an election year, we are very bullish on the North Alabama market,” said Joe Hollingsworth, CEO of The Hollingsworth Cos., the largest nonurban industrial real estate developer and construction firm in the Southeast. “We have grown our business on the belief that American manufacturing will continue to prosper, and the Southeastern United States will lead this growth. I would like to thank the community for being willing to invest time, effort, and money into being a true partner in making this park successful. “It is my belief that the next eight years will be the best economic period of our lives.” Huntsville Mayor Tommy Battle said the park will help ensure job creation and business development for the Rocket City. “Over the past 10 years, we’ve been able to announce new and expanding companies in our community that have created 30,000
jobs,” said Huntsville Mayor Tommy Battle. “To do that requires many assets. You need a workforce, you need access to markets, and you need sites and buildings. Today’s groundbreaking gives us another tool to help us in our continuing efforts to diversify
By Kimberly Ballard / Photos provided by The Hollingsworth Cos.
our economy and to make sure that anyone in Huntsville who wants a job can get a job. “We thank the Hollingsworth Companies for its continued investment and belief in our community,” Limestone County Commission Chairman Collin Daly said, “The groundbreaking of the largest speculative industrial building in North Alabama, despite being in the middle of a pandemic, is positive news for our county. We look forward to this new location assisting with the demand for industrial facilities needed for the continued growth in our county.” Brooks Kracke, president and CEO of the North Alabama Industrial Development Association, said, “This latest Hollingsworth building in Southpoint Industrial Park is much needed and is very timely in order to meet the demands of our regional growth.” n
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Huntsville BUSINESS JOURNAL
COVER
Area Commercial Construction Continue
By Kimberly Ballard / Photos by Redstone Federal Credit U There has been very little, if any, slowdown in commercial building in Huntsville and Madison throughout the COVID-19 pandemic. While the weight of uncertainty related to the pandemic has not disappeared, commercial builders and developers continue to work through it like Marshall Space Flight Center engineers work through the challenges of the space program – always moving positively forward; always working the problem from a pragmatic standpoint; and never accepting failure as a final outcome. According to Shane Davis, Director of Urban & Economic Development for the City of Huntsville, new construction permits, and permit inspection requests have not declined throughout the pandemic and the City continues to see strong growth in all building sectors. “In terms of the overall environment, we continue to see multiple new projects looking at the Huntsville market as a new or expanding location,” said Davis. “While COVID has slowed the number of potential new companies and their projects, active projects are very strong and diverse in varying business sectors. “Ongoing construction activities have been hindered by reduced workers, intermediate quarantining, and delays due to the availability in building materials. But while these conditions have slowed the overall construction pace, all ongoing commercial and industrial projects continue to move ahead with a shift in completion deadlines and openings.” He points to the very visible and very active downtown construction happening on what seems like every block. “City Centre is under construction with Phase II – lofts, retail, and a parking garage,” he said. “Two new public parking garages are going up at Greene and Monroe streets. Both the Curio Hotel and Hampton Inn and Suites are in the midst of construction, and the new Huntsville Hospital
Tower is taking shape. Last year, Russ Russell Commercial Real Estate set a land sales record for downtown Huntsville at $56 per square foot for the Hampton Inn and Suites project. Located on the corner of Clinton Avenue and Monroe Street, the land is prime downtown real estate across from the expanded Von Braun Center. “It is one of the few corners that has been vacant with no building on it,” Russell said. “Out-of-town developers look at these parcels of land with fresh eyes and are willing to pay a premium because they can see it developed, where sometimes local people can’t because they drive past it every day. “I set up an ugly tent with cold beer and rare velvet Elvis artwork, and you will be surprised how it brings that vision into full view!” he quips. Mitch Coley, division Manager at Robins & Morton, said they are working on a variety of projects in the greater Huntsville area. Some of the most visible include Huntsville Hospital’s Orthopedic and Spine Tower, Redstone Federal Credit Union, 106 Jefferson, Pelham Street Park and Redstone Gateway 7100 and 8100’s new office building. “Mid-year there was a decline in new projects and delays in projects in the planning stages as owners and developers hesitated, wanting a clearer picture of what was ahead,” said Coley. “But the industry is seeing some of these projects resuming. The good news is that those projects haven’t gone away and that’s providing strong start for next year.”
He said they are seeing a decrease in the number of new projects reported as upcoming opportunities from architect and design firms, but they believe this will manifest itself in a market-by-market and city-by-city basis. Huntsville is not likely to be as affected by what would ordinarily predict a nationwide downturn because Huntsville’s market sector is so diverse. “Looking back at the recession of 2008, the construction industry contracted,” Coley said. “It was different from what we’re facing today because of the lack of capital during the Great Recession, but it resulted in a pent-up demand for construction. “There was still a backlog when COVID-19 surfaced. Although some clients expressed hesitancy to proceed with projects in the very early stages of planning mid-year, we’ve seen many of them resume.” Russell sees positive signs everywhere. From the construction of the $40 million Autograph Collection by Marriott hotel being built to replace the southern portion of the Von Braun Center parking deck; to the long-awaited downtown Constellation development, which begins Phase I construction this fall. In addition to these large-scale projects, downtown continues to see
new businesses opening up and the redevelopment of existing spaces in the core, Davis said. “The biggest impact on new commercial projects and hospitality projects has been the pause in project financing,” Davis said. “We have
dozens of projects that still have approval from both the private equity and brand/retailer sides. However, COVID-19 has caused a pause in the start of construction due to the ability to close on the financial package. “The ability for these projects to keep the private equity and national brand approvals shows the current strength of the Huntsville market.” Don Beck, partner in The Shopping Center Group of Alabama concurs. “The banks are lending money and it is cheap,” said Beck, whose company specializes in retail developments. “Bankers know the Huntsville market is good because its employment base is there with federal dollars coming from Redstone Arsenal and subcontracting coming from Cummings Research Park. With the jobs there, the banks are a yes for lending.” On the other hand, many banks are showing hesitancy toward some restaurants and hotels. According to Joey Ceci, president of the Breland Companies, “We have several cases
September 2020
9
STORY
es to Rise in Wake of COVID Uncertainty
Union, Robins & Morton, and The Hollingsworth Cos. where regional hotel and restaurant owners are ready to move forward but in those two industries, it is almost impossible to get financing, despite their financial statements looking fine. Accessing capital is very important to companies that are expanding so this has been a deterrent.” Outside of downtown, Davis points to growth and the success of other commercial projects throughout the region.
start construction this fall. “Most of the infrastructure construction, site grading, and utility relocations are wrapping up such that the redevelopment plan can go vertical,” said Davis. “We believe 2021 will be an exciting year for MidCity as the building architecture that has been shared through the Master Plan will come to life.” One of the worst kept secrets in Madison County is all that red clay
SouthPoint Business Park, off Interstates 65 and 565 and five miles from the Mazda Toyota Manufacturing plant, broke ground on its 11th facility at the 1.9 million square-foot industrial park that is already home to six companies. The new building is the region’s largest spec industrial facility and, according to Davis, it is almost full. SouthPoint is a component of the larger regional economic strategy, and Davis calls out regional leaders and partners for that expansion, as they continue to focus on the bigger picture and work to be successful in those areas. “Cummings Research Park remains the location of choice for big business,” Davis said. “Several entities have plans for expansion and the city continues to invest in new and updated infrastructure as part of implementing the updated Master Plan. Even with the COVID events, projects are in the works for 2021 and we believe will be a big year for CRP.” At MidCity, construction slowed due to COVID, but retail, hospitality, and the initial multi-family components are still on schedule to
moving around at the corner of Town Madison Boulevard and Zierdt Road. The newest Huntsville Starbucks location and Outback Steakhouse are moving forward, while Town Madison continues to build a retail center across the street from Toyota Field. The buildings are 50 percent complete and will welcome a chef-driven Italian restaurant to its tenant line-up. “Economic development continues to be a primary focus for our Madison team,” said Madison Mayor Paul Finley. “Our YTD sales tax is up over 10 percent from last year despite the COVID-19 situation, and we continue to see success in growing our retail sales tax base. “Town Madison, Madison Boulevard, The Avenue Madison downtown, Midtown, the Highway 72 corridor, and County Line Road have all seen growth in restaurants, retail, and groceries,” Finley continued. “Redevelopment of Hughes Plaza, Madison Boulevard and Hughes Road all continue to give Madison an upgraded, new and positive look.” “Retail follows rooftops,” said Beck of TSCG. “The good news is that Huntsville is still growing; we
still have a housing shortage; we still have over 10,000 jobs coming into the area; and there is still a lot of demand, even pent-up retail demand.” Beck, who has developed many retail projects throughout the region, said he is positive about the future as he sees developers moving towards mixed-use projects with a housing component and perhaps an office of medical office component fitted together with traditional retail. “We are still seeing expansion downtown and on the south part of town with the Hays Farm development,” he said. “Scottsboro, Athens and northern Madison County, Hazel Green and Meridianville are showing continuous growth. “Athens, for instance, is getting a second Publix where the old Kmart used to be. With its proximity to the interstate and Toyota Mazda, Athens is a great commuting city for Huntsville and Madison, and it should soon see a boom as it grows together with Madison.” He also said smaller towns such as Hartselle and Priceville are seeing growth as well because the commute time to Huntsville or Madison is workable. “If you moved here from Atlanta or (Washington) DC, you have an entirely different perspective on commutes,” he said. “And it is less expensive to live in those smaller towns.” The disconnect he said is with forced reduced sales volumes. Can retailers justify the construction costs and afford the rent? “We don’t know the answer to
that yet, but at some point, business must open back up and people have to get back work,” Beck said. “There’s no way these restaurants with construction costs being where they are, can at 50 percent capacity and a limit on the hours you can sell alcohol, justify new construction costs.” He said while rent must go down, at the same time, landlords have mortgages and they have to make mortgage payments. The good part is that developers and landlords are being creative in finding ways to make it work. “On pre-COVID leases, landlords are working on rent deferrals or rent reductions where the tenant pays partial rent for the time being, and when things get back to normal, going back to full rent and perhaps adding a longer lease time, like an extra year on the lease. “As long as there’s housing demand, retail will be all right, but we also don’t yet know how the Amazon effect will affect big box retail,” he said. “There are still a lot of people who want to shop in stores. Shopping is a social event just like going out to play golf or tennis. But throughout this pandemic, Amazon has filled that space and we don’t know yet how much that convenience will carry over into everyday life once things get back to normal.” Coley too said there is still a lot of uncertainty, but his company Robins & Morton believes most people are hopeful that we will gain control over the pandemic in the not-too-distant future. “When you think that it can be two years or more from planning to completion for a project, you can understand why a lot of active construction hasn’t slowed down,” said Coley. “You’re always building for the future, and I think that’s what we’re seeing here in Huntsville.” n
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Huntsville BUSINESS JOURNAL
AUTOMOTIVE
Mazda Toyota Manufacturing Makes Additional $830M Investment for Technology, Training Programs Mazda Toyota Manufacturing is providing an additional $830 million investment to incorporate more cutting-edge manufacturing technologies to its production lines and provide enhanced training to its workforce of up to 4,000 employees. “This newest investment by our partners at Mazda Toyota Manufacturing shows the company’s continued confidence in the ability of our community to provide a strong, skilled workforce to meet the demands for quality and reliability,” said Huntsville Mayor Tommy Battle. “We look forward to the day when the first vehicles roll off the line.” Total funding contributed to the development of the state-of-the-art facility is now $2.311 billion, up from the $1.6 billion originally announced in 2018.
“We are excited to learn of this additional investment being made by Mazda Toyota Manufacturing,” said Limestone County Commission Chairman Collin Daly. “We continue to be grateful to MTM for their belief in our county and look forward to our partnership with them for many years to come.” The investment accommodates production line enhancements made to improve manufacturing processes supporting the Mazda vehicle and design changes to the yet-to-be announced Toyota SUV that will both be produced at the plant. The new facility will have the capacity to produce up to 150,000 Mazda crossover vehicles and up to 150,000 of the new Toyota SUV each year. MTM continues to target up to
4,000 new jobs and has hired approximately 600 employees to date, with plans to resume accepting applications for production positions later this year. Construction of the plant continues, with 75-100 percent of the roofing, siding, floor slabs, ductwork, fire protection and electrical completed. “Mazda Toyota Manufacturing is proud to call Alabama home,” said Mark Brazeal, MTM vice president of administration. “Through strong support from our state and local partners, we have been able to further incor-
By Bud McLaughlin / Photo provided by Mazda Toyota Manufacturing
porate cutting-edge manufacturing technologies, provide world-class training for team members and develop the highest quality production processes. “As we prepare for the start of production next year, we look forward to developing our future workforce and serving as a hometown company for many years to come.” n
September 2020
BIOTECHNOLOGY
HudsonAlpha ENCODE Offers Insight into Our DNA By Lori J. Connors
For nearly two decades, the researchers at HudsonAlpha Institute for Biotechnology, in collaboration with scientists at Cal Tech, Penn State, and California-Irvine, have been part of research into human DNA and how it functions. As part of the ENCODE consortium, scientists are one step closer to understanding of how the human genome functions. ENCODE, which stands for Encyclopedia of DNA Elements, is a worldwide endeavor in the scientific community. A key hallmark of the ENCODE Project is the complete and rapid open access availability of data generated by members of the consortium, which has led to more than 2,000 publications from nonENCODE researchers who used data generated by the ENCODE Project. “One thing we learned working on the Human Genome Project is that huge endeavors like the ENCODE Project work much more efficiently when research groups coordinate their efforts, particularly because ENCODE’s charge is to generate a resource of data, materials and results that are meant to be used by the entire research and biomedical community,” said Dr. Rick Myers, president and science director at HudsonAlpha.“We recognized early on is that making the data freely available to everyone on a weekly basis, prior to publication and with no strings attached, allows researchers everywhere to make advances in their research much faster than would otherwise be possible.” This ENCODE project got its start in 2003. The Human Genome project laid the groundwork for what ENCODE would eventually become.
It all began in a time, pre-Internet, when technology was crude and rudimentary. It consisted of very large complex data sets; the process was slow and very costly. “The Human Genome project started in 1990; I was lucky to be part of it,” said Myers. “It was a group of 2000 scientists around the world who figured out the first entire genetic makeup for a person. At the end of 13 years, the Human Genome project was able to present the DNA sequence of one person, which consisted of 3 billion pieces of information.” It was expensive. “That took 13 years and billions of dollars,” said Myers. “Now, we can sequence for about $1,000. It’s so much less expensive, so much more accurate, and so much easier and faster.” Most human DNA sequences are nearly 99.9 percent identical. It’s those differences that make us different from one another. Those differences include things such as traits and susceptibility to diseases. “Understanding how genes are expressed and how regulation is controlled is important, because it might be the key to unlocking the mysteries of disease,” said Senior Scientist Dr. Chris Partridge. He is the co-first author of the study with Ph.D. student Surya Chhetri. “Understanding the genomic targets of transcription factors is vitally important to understand many aspects of biology, including gene regulation, development, and to help identify the biological mechanisms of many diseases and disorders,” he said. n
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Huntsville BUSINESS JOURNAL
SIT DOWN WITH SUCCESS By Kimberly Ballard Stephanie Kennedy-Mell The Restaurant Business in the Time of COVID: Get Good at Bobbing and Weaving After she spent more than 20 years in the fashion and apparel industry, Stephanie Kennedy-Mell and her husband Matthew Mell opened the Church Street Wine Shoppe in Huntsville. Now their Church Street Family owns Purveyor at the Avenue, Pourhouse at Stovehouse; Mazzara’s at Stovehouse; and in spite of the uncertainty of COVID-19, they are about to open Catacomb, a speakeasy in the basement of Downtown Self Storage at the corner of 100 Jefferson Street and Clinton Avenue. Four restaurants and a fifth on the way – aren’t you facing unprecedented challenges? I look at it as a time to work on your bobbing and weaving skills. The alternative is to get overwhelmed by it and it’s easy enough outside of COVID for small business to get
overwhelmed. We take things as they come at us. Adjust, ask questions, and prioritize. Bobbing and weaving all the time and repeating our mantra #keepmovingforward. How are you getting through it? We live in an amazing community. It is so supportive of small business and we feel very lucky for that. We are extremely cautious with our customers and our employees, thanks to relationships we have with people at the hospital. They have guided us on how to sanitize our restaurants properly and thoroughly; how to deal with positive cases, and how to follow protocols so we can stay open and keep people safe. They provide us with quick testing, so all our employees are tested for the virus before they are hired on at the Church Street Family. It must come back negative before
they can start. What advice would you give someone getting into the hospitality business right now? I’m not sure it’s the best time to start a new business, so if you are not already established, I would advise them to hold off. If they are already established, I say giving up is not the answer. Go slow, be cautious, and reassure people you have survived and are following protocols and guidelines. How are things at Stovehouse? It is a great socially distanced space, mostly outdoors, and the tables are socially distanced. It is a comfortable place to go right now to eat and drink, play bocce ball and enjoy music. It is very popular and still growing. The tenants talk to each other daily and have conversations about what is working and what is
not; and what we can do together. And the future? It is all about attitude. This too shall pass, so keep your chin up. Have a plan and execute your plan. You may have to alter that plan but stay with it. n
September 2020
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HEALTH / MEDICINE
Sanmina on Cutting Edge of Research to Detect COVID-19 Infections Sanmina Senior Engineer Robert Newberry has more than 30 patents in research and development to his credit in a distinguished career that has spanned some 25 years and two countries. Newberry, who earned his degree at UAH, has worked in international product design and manufacturing and earned recognition in this field as a leader in medical sensing technologies. He’s had stops as Managing Director at Si-Gate GmbH, R&D Manager with Daimler in Stuttgart,Germany and with Chrysler Group USA. He has been at the forefront of developing non-invasive methods to measure things such as blood type, sepsis infection, insulin and glucose levels. In late February something new came along that changed the course of the innovative groups he leads at Sanmina -- the novel coronavirus COVID-19. Today, he’s spearheading research for a non-invasive device that could speed the detection process of possible COVID-19 infection. Sanmina has released a preprint paper, or one that has not been formally reviewed, and Newberry recently discussed his research. If things go as hoped, Sanmina will produce a device that would be used like a blood-pressure monitor and could be used in a doctor’s office or emergency room. It would reveal indicators that could give health providers an early warning of possible viral infection within minutes. It would lessen patients’ possible exposure in settings where the virus might exist. “We’re not looking at the antibodies, but we’re looking at the reaction of the different immune system components, the different organs, and our device allows us to do this, basically within five minutes,’’ Newberry said. “So, this is the core mission of what we’re trying to accomplish, as well as trying to address the long-standing problem of patients going septic in the hospital. Sepsis is the cause for about 50 percent of hospital deaths worldwide. “It is an extremely severe problem and a lot of people have been studying this for quite some time. We’ve been doing research along this line. I am
leading the research team. We have a number of patents that my team and I have been filing as we develop this technology.’’ Newberry said his teams have been “researching non-invasive optical sensing for the past several years, and it’s related to postdoc symmetry.” “We don’t use invasive techniques such as drawing blood,” he said. “We monitor data derived from a finger sensor that produces signals to measure changes in circulation and other changing parameters.’’ Complex signals in the bloodstream, he said, reveal complex signals for detection and trends in a person. “We’re working with … Dr. Evangelos J. Giamarellos-Bourboulis, based in Athens, Greece.” Newberry said. “He is the president of the European Septic Shock Society. We started a clinical trial to see if we could detect early sepsis, which you might be aware of is a form of an infection that goes out of control and makes organs dysfunctional. And, so, we’ve been doing a lot of monitoring with our device in a clinical setting, and this was all going along just fine and then the pandemic hit. “At that time, what we knew was that nitrous oxide, which is produced by the body, has three different synthetic forms, and one of those forms tends to amplify at a high rate prior to someone getting organ dysfunction beyond acceptance, which is sepsis. Our clinical data indicates that somewhere between two and six hours before a clinical diagnosis of sepsis, signals with our device can provide a pre-warning of sepsis. And this is fundamentally what our research is about.’’ Newberry’s long history researching sepsis makes him an obvious candidate to explore COVID-19.
“In the worst case-patients with COVID-19, it leaves a pathway to sepsis,” he said. “So, when you hear about a patient with a severe case, normally they’ll go from the hospital ward to the ICU and they’re actually struggling with sepsis. In nearly every case this is what happens. The care providers in the hospitals are trying to fight this. In a fast-track study, we actually monitored known COVID cases in hospitals in Europe. “We took a certain cohort of those patients and we were able to confirm, both with gold standard methods using the blood plasma and our sensor, that nitric oxide is greatly amplified prior to the severe condition of COVID-19. This is part of the results that have
By Mike Easterling
been summarized in the paper that you might have seen on the preprint. “What we’re trying to discover is if we can identify three different subcohorts of COVID-19. We’ve already tested symptomatic patients that are hospitalized, but we’re trying to determine with our device whether we can tell if asymptomatic or pre-symptomatic people are sick and provide an indication.’’ Sanmina is primarily a global contract manufacturer that builds products for other partners. “We’ve been trying to get this technology to the next level of readiness so that a partner can deploy this solution,’’ Newberry said. Newberry said he couldn’t offer a possible launch date for the device once fully developed. “I would say that our research that’s published is state of the art,’’ he said, “but I’m not able to comment about a timeframe.’’ n
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Huntsville BUSINESS JOURNAL
BRIEFCASE
RECOGNITION
Scott Gray is Named President of Gray Analytics Huntsville-based Gray Analytics recently named Scott Gray as president. He formerly served as vice president of business development. Gray Analytics provides cyber support to commercial and defense companies across the U.S. Prior to Gray Analytics, he spent 18 years at IBM where he was responsible for hardware infrastructure for the Army, Navy, Marine Corps and Missile Defense Agency. “Scott brings a career’s worth of knowledge and experience in cybersecurity and solutions to his role as president,” said Gray Analytics CEO Ron Gray. “As Gray Analytics looks to the future and prepares for the growth of our team, our capabilities and our client base, Scott is the person to lead the way.” Gray Analytics, founded in 2018, offers cyber compliance (NIST and CMMC), hypersonics engineering, secure supply chain support, digital forensics and software development, among other services. “We’ve been able to build an exceptional group of people at Gray Analytics and I look forward to working with the leadership team to shape our strategies moving forward,” said Scott Gray. “We will continue to place top priority on helping our clients solve challenging technical problems and on providing our team members an environment in which they can excel.” Gray received a bachelor’s in industrial engineering from the University of Alabama, a master’s in engineering from the University of Alabama in Huntsville and a master’s in business administration from Vanderbilt University.
RECOGNITION
Vibronyx Appoints Noreiga as Director of Aerospace and Defense Dr. Quentin Noreiga has been named director of Aerospace and Defense for Vibronyx, a supply chain technology and analytics services company. An Army veteran, Noreiga brings some 25 years of experience in the military supply chain to help grow and service the company’s aerospace and defense clients. Vibronyx recently won a Phase III follow-on contract with the Defense Logistics Agency to modernize food management systems. “Vibronyx describes itself as business-minded Veterans rooted in the Warrior Ethos, a mission that resonates with me on a deep level based on the oath I took to uphold our nation’s Constitution, and my desire to continue supporting our country however I can,” Noreiga said. “I’m looking forward to leveraging my skills as a problem solver to help our clients address the world’s toughest digital and cybersecurity supply chain challenges.” Noreiga will officially retire as a colonel this month. Most recently, he served as Military Deputy Director for the Army Materiel Command Analysis Group in Redstone Arsenal, Noreiga earned his bachelor’s in mechanical engineering from the United States Military Academy; master’s in business administration from Old Dominion University, a master’s in civil engineering and a Ph.D. in systems engineering & operations research from Vanderbilt University; and a master’s in strategic studies from the U.S. Air Force War College.
September 2020
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BRIEFCASE
Hexagon to Unite GIS Solutions for Huntsville Utilities Hexagon’s Safety & Infrastructure division announced Huntsville Utilities has chosen Hexagon’s geographic information system (GIS) to consolidate the utility’s GIS solutions into one. The new GIS will serve as the foundation for building and managing Huntsville Utilities’ electric, gas, water and fiber infrastructure. Huntsville Utilities has partnered with Hexagon for three decades to provide utility services to Huntsville and Madison County. With Hexagon’s GIS solutions providing a single source of location-based information, Huntsville Utilities will have real-time data for the operations, engineering and accounting teams who rely on the data to provide safe, reliable service to the utility’s more than 330,000 customers. “Where we go and what we do in the next 20 years is based on foundational decisions such as our GIS core,” said Wes Kelley, CEO of Huntsville Utilities. “With Hexagon’s solution, we have a single source of information for our physical assets, a trusted platform upon which we will build all our solutions.” Applications of the new GIS system
include outage management workflows, preventive maintenance strategies and more. Users of the new system will be able to design and maintain information about the utility’s assets via the web and mobile devices, which extend the solution into the field to make critical decisions. “We’re honored Huntsville Utilities selected Hexagon’s GIS solutions,” said Steven Cost, president of Hexagon’s Safety & Infrastructure division. “We are proud to be part of Huntsville Utilities’ path forward, not only as a technology provider, but also as a partner in the development of our local community in Madison County, Alabama.” n SAIC Adding Innovation Factory Hub SAIC is adding an Innovation Factory Hub to its Huntsville site, expanding its presence and support to local customers. This marks the latest expansion of SAIC’s Innovation Factory network where the Department of Defense and other federal government agencies can evaluate new technologies and accelerate delivery of new and modernized systems. SAIC’s Innovation Factory is a nationwide network of physical and virtual
environments using a highly automated, cloud-hosted toolset; agile practices; and DevSecOps production chains to rapidly build, test, and deploy first iterations of solutions quickly and then enhance them quickly through close customer collaboration. Innovation Factory hubs connect SAIC’s innovators and toolsets, startups/ tech companies, and the customer. The Huntsville Innovation Factory Hub will be integrated into SAIC’s Innovation Factory network and showcase uniquely focused technologies enabling end-to-end analysis, experimentation and engineering focused on digital engineering with modeling and simulation and rapid prototyping capabilities. “As we have witnessed during the COVID-19 pandemic, the requirement for true digital transformation has never been greater. This expansion to SAIC’s longstanding presence in Huntsville with a new Innovation Factory Hub allows us to support emerging needs, while also leveraging our solutions and company-wide expertise – developed over four decades supporting local customers,” said Jim Scanlon, SAIC executive vice president and general manager of the Defense Systems Group. “With all sectors rapidly implementing technology to meet and conduct business virtually,
our new Innovation Factory Hub will enable our Huntsville-area customers to accelerate solutions to meet their mission requirements.” n Davidson Receives Gold Boeing Performance Award Davidson has received a 2019 Boeing Performance Excellence Award, recognizing suppliers who have achieved superior performance. Davidson maintained a Gold composite performance rating for each month of the 12-month performance period, from October 2018 to September 2019. This honor has been bestowed on Davidson since 2009 as they continue growing their relationship with Boeing in Huntsville. Davidson is one of only 62 suppliers to receive a Gold level Boeing Performance Excellence Award this year. “Fantastic news! To be selected as a Gold supplier for Boeing is quite an honor,” said company President John W. Holly. “We take great pride in the quality of our performance and the criticality of the mission. We are truly honored by this recognition.” Huntsville-based Davidson provides integrated solutions to engineering and technical problems. n
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Huntsville BUSINESS JOURNAL