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Carvana plans to open Alabama distribution hub, creating more than 450 jobs

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Governor Kay Ivey announced today that Carvana, a leading e-commerce platform for buying and selling used cars, plans to invest more than $40 million to construct an Alabama distribution and fulfillment center, creating more than 450 jobs in Bessemer.

Carvana, the fastest-growing auto retailer in the U.S., plans to open the Jefferson County facility to strengthen its logistics network in the Southeast, which is integral to addressing the nationwide demand the online auto retailer is seeing for The New Way to Buy a Car™.

“We have been working hard to position Alabama as a prime destination for fast-growing growing e-commerce companies needing a first-class infrastructure network for their distribution operations,” Governor Ivey said. “We are thrilled that Carvana has selected Bessemer for its newest state-of-the-art distribution hub and look forward to building a partnership with this innovative company.”

Carvana’s planned Bessemer hub will handle fulfillment activities for Alabama and surrounding states, and it will coordinate with similar facilities as the company moves inventory across the nation. The center will also house inspection, maintenance and photography functions critical to delivering the exceptional customer experience Carvana has become known for.

The planned Carvana facility is slated to be constructed on a privately owned site in Bessemer, a former industrial center about 18 miles southwest of Birmingham. Carvana plans to invest more than $40 million to build and equip the new facility.

The project should create more than 450 jobs with an average annual salary exceeding $35,000.

“Though Carvana is relatively young, its technology-focused model has powered rapid growth and made the company a growing force in the auto retailing industry,” said Greg Canfield, Secretary of the Alabama Department of Commerce. “I know that Carvana’s new, state-of-the-art facility in Bessemer will help the company continue to grow and sustain its rapid momentum.”

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In as little as five minutes, customers can shop more than 15,000 vehicles on Carvana.com, finance, purchase, then select as-soon-as-next-day delivery or Car Vending Machine pickup. Customers shop from the comfort of home or on the go via their mobile device, saving valuable time and money by skipping the dealership.

Carvana vehicles are inspected, reconditioned and photographed in 360-degrees at its inspection centers, like the one planned in Bessemer, so customers get a detailed, high-definition virtual tour of every vehicle. Additionally, every vehicle comes with a seven-day return policy, so the customer can live with their vehicle for a week and ensure it fits their life.

Officials in Jefferson County welcomed Carvana’s decision to locate one of its newest distribution centers in Bessemer.

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“We’ve enjoyed tremendous success in Bessemer when it comes to recruiting companies to our city, whether it be Dollar General in 2011 or most recently Amazon,” Mayor Kenneth Gulley said. “We’re tremendously excited about Carvana joining this growing list of companies, especially because Carvana will be creating jobs that will offer great wages and benefits that will afford residents of Bessemer an opportunity to work hard and provide a great life for their families.”

Jefferson County Commission President Jimmie Stephens said the Carvana project represents a milestone in the county’s economic development efforts.

“Adding 400 jobs in the Bessemer area in addition to Amazon is really changing the business landscape not just for Jefferson County but for the entire region,” Stephens said. “Carvana is a forward-looking company that is looking at the business of selling cars in a different way.”

Jeff Traywick, vice president of economic development for the Birmingham Business Alliance, said the metro area’s western region continues to see increased attention from companies in the e-commerce and logistics sectors.

“This project is further evidence that the area’s strong infrastructure, central location in the southeastern United States and our quality workforce makes our region an excellent choice for companies looking to grow in the South,” Traywick said. “We are excited about Carvana’s selection of Bessemer for this new facility and look forward to their continued success.”

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Economy

Paper lottery said to be close to having votes for House passage

Bill Britt

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A yet to be submitted paper only lottery bill by Rep. Steve Clouse, R-Ozark, the House budget chairman, reportedly has over 60 co-sponsors, according to those familiar with the legislation.

Any lottery measure requires a constitutional amendment that can only pass with a three-fifths vote of the membership in both chambers, which equates to 63 votes in the House and 21 in the Senate.

It now appears that Clouse either has the votes to pass the House or is within close striking distance.

Clouse’s bill would create a paper lottery with scratch-offs and PowerBall options but would exclude video lottery terminals. Clouse said he expects it to generate around $167 million annually.

Concerns expressed by those who understand gaming-finance is that Clouse’s paper lottery is a game of demising returns and will slow or completely end any attempt to enact a comprehensive gaming package which would generate substantially more income for the state at 4.5 times more than Clouse’s projection.

Last week, Speaker of the House Mac McCutcheon, R-Monrovia, informed reporters that public opinion is driving the debate on lottery legislation.

“Legislators are hearing from constituents who are asking why all of our neighboring states have lotteries and other gaming and we don’t,” McCutcheon said.

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McCutcheon says public opinion is driving gambling debate

For the past several years, polling has shown that a majority of Alabama voters want a lottery. A recent survey found that voters favor a lottery by over 60 percent.

That constituents are driving the debate may have more to do with the calendar than the actual voters’ wishes.

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It is widely thought that any controversial legislation should be passed in the first two years of the quadrennium to allow any voter resentment to decrease before the next election. It is suggested that this is thinking that is motivating the move to pass a lottery this year.

During her 2020 State of the State address, Gov. Kay Ivey tried to seize the issue of a state lottery and gaming, asking the Legislature for “time to get the facts” on which gaming proposals are best for the state and then bring a plan to the voters.

Ivey seizes gaming issue

Ivey announced the members of a panel she’s ordered to study how much revenue the state could bring in from an expansion of gaming and a state lottery on Feb. 14.

McCutcheon recently told APR that he was standing by the governor’s request that the Legislature give her time to sort out the gaming issue. Still, last week’s statement seemed to open the door a crack toward allowing a lottery bill to go forward.

Before the 2020 session, McCutcheon said that he wanted a grand bargain between the Poarch Band of Creek Indians and pari-mutual track owners. He warned that if a deal between all the parties could not be reached, then there would likely not be any gambling bills brought forward in 2020.

That changed after Ivey’s announcement and his office said: “The Speaker will be working with the Governor in her efforts.”

Speaker McCutcheon standing with governor on gaming workgroup

McCutcheon’s position is seminal on any issue coming before the lower chamber with even the slightest ambiguity or hinds of change in his thinking, causing major upheavals within the State House.

State senators who asked for anonymity to speak their minds believe that a paper lottery is dead on arrival in the upper chamber, raising further questions.

Alabama is one of just five states in the country without a lottery, and it is now the only state in the South without one. Mississippi began its lottery this year.

 

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Economy

Likely Republican primary voters reject Poarch Creeks “winning” plan

Bill Britt

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A survey of likely Republican primary voters obtained by APR shows that a majority do not support giving the Poarch Band of Creek Indians a monopoly over gaming in the state despite the tribe’s promise of a billion dollars.

Over the last several months, PCI has orchestrated a massive media blitz to convince Alabamians that they have a winning plan for the state’s future in exchange for a Tribal-State compact and exclusive rights to Vegas-style casino gaming.

The survey commissioned by the Republican House and Senate caucuses and conducted by CYGNAL, a highly respected Republican polling firm, found that only 34.1 percent of likely Republican primary voters are buying what the tribe is selling. On the contrary, nearly 50 percent of Republicans oppose the plan, with almost 40 percent voicing strong opposition.

Of those surveyed, females are against the plan by nearly 50 percent, with men weighing-in at almost 60 percent unfavorable to PCI’s proposal.

Perhaps most significant is that PCI’s monopoly plan was widely rejected in areas where the tribe already operates casinos. In the Mobile area, nearest Windcreek Atmore, over half of Republicans see a monopoly unfavorably. The same is true in the Montgomery area, where PCI has two gaming facilities.

Not a single big city surveyed in the state held a favorable view of PCI’s plan with Birmingham and Huntsville rejecting the tribal monopoly by almost 50 percent.

Very conservative, somewhat conservative and moderate voters didn’t view the plan as positive.

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Ninety-one percent of respondents said they defiantly would be voting in the upcoming Republican primary on March 3.

PCI has lavished money on media outlets throughout the state, garnering favorable coverage, especially on talk radio and internet outlets. The tribe has also spent freely on Republican lawmakers.

Perhaps some good news for PCI is that Republican primary voters believe that state legislators are more likely to represent special interests above the interests of their constituents.

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PCI lobbyists continue to push the tribe’s agenda at the State House in defiance of Gov. Kay Ivey’s call for no action on gaming until her study group returns its findings.

The survey found that Ivey enjoys a 76.3 percent favorability rating among likely Republican primary voters.

 

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Economy

ADECA names Elaine J. Fincannon as new deputy director

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Alabama Department of Economic and Community Affairs Director Kenneth Boswell announced on Thursday that Elaine J. Fincannon has been appointed as the agency’s deputy director.

Fincannon most recently served as Senior Vice President for Investor Relations for the Business Council of Alabama. She worked with BCA for over 25 years as part of its senior team, working with a diverse range of business leaders and CEOs of Alabama’s largest employers. During that time, she also served as BCA’s liaison to Alabama’s trade associations and to the more than 100 chambers of commerce throughout the state. She also served on the President’s Committee and Corporate Partners Committee for the Alabama Automotive Manufacturer’s Association and was a part of the Alabama Aerospace Industry Association’s membership committee.

“Elaine Fincannon’s extensive knowledge and experience with the public and private sector in our state made her an ideal choice to be ADECA’s new deputy director, and I am pleased that she has decided to bring those talents to the agency,” ADECA Director Kenneth Boswell said. “Elaine is mission-focused, forward-thinking and detailed-oriented, which are the exact skills needed to serve as deputy director of ADECA. She and I will work closely together to continue supporting Gov. Ivey’s mission of improving the lives of all Alabamians.”

Fincannon is an active member of the community, serving as a member of the Montgomery Area Chamber of Commerce, the Junior League of Montgomery, the Montgomery Humane Society, Auburn University Montgomery Alumni Association and other volunteer efforts. She also served as a member of the American Society of Association Executives and was an officer of the Association of State Chamber Professionals. She has a bachelor’s degree of science from AUM and was honored with a Distinguished Chamber Professional Award in 2019 by the Chamber of Commerce Association of Alabama.

Fincannon joins ADECA with a focus on working with Boswell to meet the agency’s mission to strengthen and support local communities.

“It is an honor to join ADECA during this time, and I am grateful to Director Boswell and Gov. Ivey for this appointment,” Fincannon said. “I plan to work diligently to serve the people of Alabama to the absolute best of my ability.”

 

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Alabama Workforce Council delivers annual report touting improved career pathways

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The Alabama Workforce Council (AWC) recently delivered its Annual Report to Gov. Kay Ivey and members of the legislature. The report highlights the many and varied workforce successes from 2019. It also outlines policy recommendations to further solidify Alabama as a leader in workforce development and push the state closer to Ivey’s goal of adding 500,000 credentialed workers to the state’s workforce by 2025.

Gov. Ivey acknowledged the recent progress stating, “the continued efforts of the AWC and the various state agency partners in transforming our workforce are substantial. Significant work has been accomplished to ensure all Alabamians have a strong start and strong finish. We will continue to bolster our state’s economy through dynamic workforce development solutions to help us reach our ambitious goal.”

The AWC, formed in 2015, was created as an employer-led, statewide effort to understand the structure, function, organization and perception of the Alabama workforce system. The goal of the AWC is to facilitate collaboration between government and industry to help Alabama develop a sustainable workforce that is competitive on a global scale. 

“This report details the tremendous efforts of the dedicated AWC members and their partners who have greatly contributed to the progress of building a highly-skilled workforce.” noted Tim McCartney, Chairman of the AWC. “To meet ever-growing job needs of an expanding economy, we have put forth recommendations to bring working-age Alabamians sitting on the sidelines back into the workforce to address our low workforce participation rate.”

Included among the many highlights from the report are:

  • Created the Alabama Office of Apprenticeship to support apprenticeships and work-based learning statewide.
  • Established the Alabama Committee on Credentialing & Career Pathways (ACCCP) to identify credentials of value that align with in-demand career pathways across Alabama.
  • Furthered foundational work toward cross-agency outcome sharing through the Alabama Terminal on Linking and Analyzing Statistics (ATLAS).
  • Commissioned statewide surveys to better understand the characteristics, and potential barriers, of the priority population groups (during record-low unemployment) identified as likely to enter or re-enter the state’s workforce. 
  • Provided technical assistance, support staff and grant writing services to a cohort of over 30 nonprofits from across the state enabling them to expand services and directly connect more Alabamians to training and economic opportunity. Services helped cohort members secure over $6.4 million in grant money through various out-of-state grant programs.
  • Identified and evaluated 17 population segments of potential workers and determined the likelihood of adding members of those respective population segments into the workforce. Within this process, issues affecting the state’s labor participation rate were also detailed. 

Vice-Chair of the AWC Sandra Koblas of Austal USA commented, “the energy around workforce development in Alabama right now is incredibly exciting. We are working together with businesses, nonprofits and agency partners to reduce barriers, increase opportunities and grow the state’s overall economy.”

The full report can be viewed here.

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To learn more about the Alabama Workforce Council please visit: www.alabamaworks.com/alabama-workforce-council

 

 

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