ALABAMA NO. 1 IN NATION

May 18, 2006

Governor Riley Reports on Economy, Announces Alabama Winner of National “Golden Shovel” Award for New Industry

PRATTVILLE – Major industry announcements during the past year that are expected to create 5,400 new jobs have earned Alabama the nation’s top “Golden Shovel” award from trade journal Area Development, Governor Bob Riley announced today.

Speaking to the Prattville Area Chamber of Commerce about Alabama’s economy, Governor Riley said the magazine ranked Alabama number one in the nation based on the 10 biggest job-creating and investment projects initiated last year.

 “This is like winning the Oscar for economic development,” Governor Riley said.  “Alabama’s economic growth strategy has once again been nationally recognized for being a huge success.  Our strategy is working and the results speak for themselves.”

 Those results include the addition of almost 115,000 jobs since January 2003, a historically low unemployment rate of 3.6 percent, and more than 1,500 new and expanding industries in the state during the past 40 months.

 To determine the recipient of the Golden Shovel award, the editors of Area Development magazine contacted each state and asked for verifiable information about the 10 top job-creation and investment projects that were actually initiated during 2005.  Each state was then ranked based on five factors:  the number of direct jobs created; new jobs per capita; amount of company investment; the number of new facilities; and the number of projects that created high value-added jobs.

 Governor Riley said he was especially proud that the major industry announcements considered by the magazine are spread all across the state.

 “In the past, most of our growth occurred along our interstate corridors.  Today, we’ve succeeded in spreading economic growth and new opportunities beyond our interstates,” Governor Riley said.  “Every county in Alabama today has unemployment rates in single digits.”

 Governor Riley also said while the state is aggressive in bringing new industry to Alabama, it hasn’t forgotten about existing industries. 

 “We put in a new framework for economic development that doesn’t ignore our existing Alabama companies.  In fact, 81 percent of the companies announcing new or expanding facilities during my administration have been existing industries,” Governor Riley said.  “They’ve accounted for 63 percent of the announced new jobs.”

 The Golden Shovel award is the latest honor Alabama has received for its economic strength.  Southern Business and Development magazine, a trade journal that reports on the economic development of 17 Southern and border states, has named Alabama its “State of the Year” for the past three years – 2003, 2004 and 2005.  Site Selection magazine ranked Alabama as the “Most Competitive” state in the nation in 2005 and the Alabama Development Office as the best state economic development agency in the nation.

 According to Area Development, Alabama’s top 10 economic development projects last year were:

 COMPANY                            CITY               JOBS              PRODUCT

EADS North America Inc         Mobile             1150                Aerial Refueling Tankers & Engineering

Hudson-Alpha Institute for

Biotechnology                           Huntsville          1063                Research & Commercialization

Kronospan U.S. LLC               Eastaboga        700                  Wood Laminated Flooring Products

Austal USA                              Mobile             600                  High-Speed Aluminum Ships

Jo-Ann Stores Inc                    Opelika            425                  Fabric & Craft Goods Distribution Center

EJM Aerospace                       Andalusia         400                  Maintenance, Repair & Upgrade of Aircraft

North American Lighting           Muscle Shoals  320                  Automobile Tail Lamps

GKN Aerospace Services        Tallassee          250                  Aerospace Composites

C & S Door Corporation          Ozark               250                  Unfinished Wood Doors

Hanil E-Hwa Interior Systems   Selma               242                  Interior Trims for Automobiles

While Alabama’s automotive development stays in high gear, growth is also being reported in aerospace and aviation, life sciences, research and distribution.

 Aerospace and aviation projects are on a steady ascent in the state. The aerospace industry has created more than 73,000 direct jobs in Alabama, according to Area Development, and annual payroll for Alabama’s aerospace jobs is more than $3 billion.

 EADS North America broke ground at the end of January on its engineering “center of excellence” in Mobile.  Alabama Development Office Director Neal Wade notes that the company is currently bidding on a military tanker project that has the potential to bring in more than 1,100 workers.