Executive Summary

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FOR AEROSPACE COMPANIES

EXECUTIVE SUMMARY

Incentives	Workforce	Transportation
Operating Profits	Demographics	Supplier Capacities
Quality of Life

Baldwin County offers a unique set of assets to aerospace manufacturing or maintenance and repair companies. Chief among these are:

	Available buildings and sites.
	Trained and growing workforce with local FAA certified training center.
	Growing regional population, 75% increase since 1990.
	Diverse and robust transportation system consisting of interstate and other highways, rail, commercial airports and maritime facilities handling bulk and containerized cargo.
	Proximity to Brookley Field, future home of EADS/CASA.
	Competitive wages, on average are over 10% less than other areas.
	Superb quality of life.

Available Buildings:

	Peavey Building, Foley, 94, 000 sq. ft. on 11 acres in an industrial park
	Former Citation Building, Bay Minette, 89,000 sq. ft. on 11 acres on US Hwy 31

Available Sites:

Aerospace manufacturing and MRO sites available:

	Gulf Shores Airport Business and Industrial Park: 60 Acres.
	Fairhope Airport Site: 144 Acres.
	Bay Minette Airport Site: 110 Acres.

Incentives:

Infrastructure Development Grants for renovating a building or for site preparation.

Property Tax Abatement up to 10 years on land, building, machinery and equipment.

Sales and Use Tax Abatement on construction materials and equipment placed in service.

Tax Increment Bond Financing.

Special Improvement Bond Financing.

Airport Revenue Bonds.

AAAE Airport Capital Loan Program.

Low interest and zero interest loans.

Other federal, state, and local incentives:

	Industrial development training, which Includes program development, use of advertising, mobile training unit, pre-employment training, on-the-job training, and wage reimbursement.
	State Capital Income Tax Credits of 5% of capital investment for 20 years to offset state income tax liability.
	Foreign Trade Zone in Gulf Shores and Fairhope.
	Federal Hub Zone in Bay Minette.
	Waiver of the cost of certain local fees.
	Employee intangible incentives for relocating employees that include discounted banking, moving, printing, and hotel services for house hunting.

Cost Comparison - Operating Profit:

An independent study by DCG Corplan Consulting put hypothetical aerospace companies in several areas around the country and compared all of the factors that affect profitability. Bottom line: Costs are lower and profits are higher in Baldwin County.

Aerospace Operational Profit for Aircraft Parts and Auxiliary Equipment Manufacturing (NAICS 336413).

Baldwin County, AL	National Average	Difference
10.3%/year	8.8%/year	1.5%/year

Aircraft Manufacturing (NAICS 336311).

Baldwin County, AL	National Average	Difference
12.8%/year	10.9%/year	1.9%/year

Aircraft Engines and Engine Parts (NAICS 336412).

Baldwin County, AL	National Average	Difference
12.3%/year	8.2/year	4.1%/year

Source: DCG Corplan Consulting LLC

Availability:

Over 4,000 employed in aerospace in the labor market area.

Over 3,000 employed in electronics/electrical assembly manufacturing.

25% of workforce is "underemployed" persons in the Mobile MSA.

Percentage of industrial unionized workers: less than 5.1%.

There are no metalworking unions in Baldwin County.

Training:

	Enterprise-Ozark Community College’s, FAA certified, Aviation Center at Brookley Field, in Mobile, offers Associates Degrees in Airframe Mechanics and Power plant Mechanics.
	Alabama Industrial Development Training provides workforce training for new and expanding companies at no cost to the company and has successfully recruited and trained workforces for: Pemco Aeroplex, Inc., Sikorsky Support Services, MAE, Boeing and Goodrich.*
	Career Center On-the-Job Training provides businesses a reimbursement of up to $10.00 per hour and six months of training.*

*Available to Qualifying Companies

Employee benefits are 23% of compensation for Aerospace Industry in Mobile / Baldwin area.

Wage Costs

Position	South Alabama	Boca Raton	Dallas	Hartford	Seattle	Wichita
Aircraft Body Repairer	18.47	21.26	21.48	23.86	24.01	20.41
Aircraft Engine Mechanic	20.02	22.94	23.20	25.64	25.81	22.04
Aircraft Maintenance	23.44	26.58	26.86	29.30	29.53	25.44
Aircraft Mechanic	22.52	25.60	25.88	28.32	28.53	24.53
Aircraft Mechanic Jet	22.30	25.36	25.63	28.08	28.28	24.30
Aircraft Mechanic for Props	19.77	22.66	22.92	25.34	25.51	21.77
Airplane Inspector	31.40	35.08	34.96	37.43	37.59	33.89
Avionics Mechanic	18.94	21.77	22.00	24.39	24.56	20.90
Avionics Technician	18.94	21.77	22.00	24.39	24.56	20.90
Electrician Certified	20.98	24.26	24.54	27.41	28.30	22.87
Metal Fabricator	15.63	18.22	18.14	20.44	20.65	17.69
Metal Fabricator Assembler	12.65	14.79	14.80	16.84	16.99	14.42
Welder	15.92	18.55	18.47	20.78	20.99	18.01
Welding Machine Operator	15.29	17.84	17.77	20.05	20.26	17.33
Welding Technician	19.52	22.48	22.39	24.90	25.10	21.84

Sources: ERI, Economic Research Institute, Inc. (data as of October 1, 2007)

Demographics:

Baldwin County population growth

1990	2007	Percentage Growth
98,280	171,769	74.8%

Transportation:

Highway: Interstates 65 & 10.

Truck: 1,067 carriers are licensed to serve the Mobile MSA.

Seven terminals are located in Baldwin County.

Fifty terminals are located in Mobile MSA and eight offer container service.

Rail: Class I service provided by CSX Rail in Bay Minette.

Commercial Air:

	Between two regional airports: Mobile Regional Airport and Pensacola Regional Airport.
	Service: ASA, American, Continental and Continental Express, Delta, Northwest Airlink, Skywest, United Express, US Airways and US Airways Express.

Cargo: UPS and FedEx maintain terminals in Mobile and Pensacola.

General Aviation:

Four municipal airports offering lighted approach.

	All four with instrument approach:
	Jack Edwards Airport, Gulf Shores: Full Cat 1 ILS

Public Bus: Baldwin Rural Area Transportation (BRATS) Network.

Parcel: UPS, Fed-Ex, DHL, Airborn Express ( UPS maintains a terminal in Robertsdale).

Ports: Alabama State Docks, Mobile; Port of Pensacola, Pensacola.

Waterways: Intracoastal Waterway, Tensaw River, Mobile River, Mobile Ship Channel.

Suppliers Capabilities:

Goodrich Aerospace: Full priming and painting facilities / wire harness assembly.

	AIRINC offers repair and overhaul of commercial aircraft instrumentation, mechanical, hydraulic and pneumatic components.
	B/E Aerospace: Aircraft parts supply house for thrust reversers.
	Teledyne Continental Motors: Piston aircraft maintenance and repair and engine installation.
	Euromex: Inventory / Logistics - 360,000 sq. ft. available for parts warehousing.

	Select Aircraft Painting: Full paint and priming facilities.
	Segers Aerospace Corporation: Corporate Headquarters and turbine engine repair & overhaul facility.

Assistance in Acquiring Related Local Businesses:

	Venture/Seed Capital Network available for financing.
	BCEDA will assist in introducing aerospace and manufacturing companies to local firms.

Quality of Life:

	EASI Quality of Life Index: 178 (US Average - 100).
	EASI Cultural Index: 152 (US Average - 100).
	Monster.com Cost of Living Index: 62 (US Average - 100).
	Sperlings Cost of Living Index (Fairhope): 94.6 (US Average - 100).
	ACCRA Cost of Living Index: 90.6 (US Average - 100).

(Reflects cost differentials for professional and executive households in the top income quintile)

Abundant Recreational Opportunities.