Over the past 30 years being involved with manufacturing plants and manufacturing greenfield projects, it has become more and more important to make the reliable and cost-effective energy sources to a facility a top three priority. This not only is evident in the facility that may already exist, but also and more importantly, when selecting a greenfield site to establish a manufacturing facility.

I have been active in the past six years in selecting sites and constructing two different manufacturing facilities in the floor tile manufacturing sector. The first of which is currently producing with the second in the environmental and permitting phases. Both projects in the $150,000,000 range.

The site selection process consists of factors that affect the bottom-line of the facility. At the top of the list as previously stated is energy sources, namely electricity. The first factor for consideration is the cost of energy and the reliable service of the provider. My experience over the years has made my first priority of site selection within the TVA coverage area. The main factor being reliability of service, with or without a firm-based billing structure. I have been involved with several different billing options of which all have given exceptional service with little or no interruption of service due to maintenance or weather-related issues. The second reason is cost of energy from TVA. The rate structure over the years has been stable. This makes budgeting and planning reliable for the corporation involved. Thirdly, TVA has been helpful with community interaction, site study, and incentives. These three items when combined as a factor of site selection makes the site selection decision easier in many ways. Not only the sizable incentives offered, but also the relationships brought to the table within the community being reviewed and informative data about the site.

-James “Jed” Durbin, VP Manufacturing & Outsourcing, North America, Portobello America

Portobello Grupo, a leading ceramic surfaces company in Brazil and one of the top ten companies in the world, made the decision to locate their U.S. headquarters and first U.S. production plant in Baxter, Tennessee.

Over the last two decades, Alabama has emerged as one of the most competitive states for recruiting business and industry, attracting investment from leading companies such as Toyota, Airbus, Honda, Amazon, Baxter, GE Aviation, Lockheed Martin, Facebook, Mercedes-Benz, Google, Boeing, Hyundai and Blue Origin.

Each time Alabama competed for a major industrial prize, utilities were an essential part of the team that gave these companies confidence that Alabama offered the best location for their project. And while they certainly play a direct and crucial role with their technical expertise, critical infrastructure and ability to deliver low-cost, reliable energy, their contribution to Alabama’s success extends well beyond their core capabilities.

Many years ago, utilities in Alabama helped introduce the concept of economic development in order to grow their customer base. But what began as a business development strategy eventually grew into a holistic effort to transform the economy and improve the overall quality of life for our communities and states.

Utilities started and led community and economic development programs that have helped position our state for positive economic growth. Today, large utilities, co-ops and municipal companies in our state are all heavily invested in efforts to make our communities and state more competitive.

These include programs to assess and improve infrastructure – including buildings and sites – assist communities in strategic planning, support workforce development and promote the state and its communities through integrated marketing programs.

Today, that role has also expanded to innovation, where utilities are investing in efforts to encourage and support startups in our state that have high-growth potential.

Our own organization was created in 1991 with strong support from utilities, who recognized the role that a private, statewide organization could have as a member of the Alabama team. Today, they are among our closest allies.

It’s a distinct advantage for us in Alabama that economic development is not merely a “function” within our utility companies, but a top priority that has become ingrained in their culture.

-Steve Spencer, President, Economic Development Partnership of Alabama

Steve Spencer is president of the private, non-profit Economic Development Partnership of Alabama.