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Chamber Blog
8/13/2010 1:37:11 PM
Forum on Offshore Drilling in Mobile
The below comments were authored by Steve Russell, the Mobile Area Chamber of Commerces director of business retention and expansion and staff liasion for Offshore Alabama - a network of local businesses supporting the oil and gas industry in the Mobile area. To reach Russell, e-mail him at srussell@mobilechamber.com. At the Aug. 10 Forum on Offshore Drilling in Mobile hosted by the Bureau of Ocean Energy Management (previously called MMS) , I had the opportunity to present to Director Bromwich several topics of concern to the local oil & gas industry, but especially addressed the moratorium. This was an excellent opportunity to have a dialogue with him along with several key members of the New Orleans office of BOEM. Other panel members represented the Dauphin Island Sea Lab, LSU, and the Florida Wildlife Federation. Below are a couple of highlights of my presentation on the moratorium: · The Mobile Area Chamber remains committed in the support of the offshore oil & gas industry which provides good paying jobs and which serves as a much needed source of energy for industry and others in the southeast US.
· We feel that it is critical that the US should have access to increased domestic supplies which not only enhances our national security, but supports our economic recovery.
· The Chamber is opposed to the six month moratorium most especially because of the jobs that will be lost in the industry and the ripple effect to suppliers, restaurateurs, and many others, much like what is now happening to the tourism and fishing industries.
· This local industry employs almost 1,900 workers in Mobile county who build service and work boats, construct subsea umbilicals systems, fabricate, weld and repair topside drilling rigs and ships, perform offshore repair, provide technology products and support, and fabricate and install flow lines in the deep water of the Gulf of Mexico.
· While most local companies are sufficiently busy now the pipeline of work is slowing and all are concerned as to what 2011 will bring.
· The Mobile Area Chamber updated industry impact analysis shows that the industry spends nearly $200 million annually in Mobile-Baldwin counties. When business takes a downturn and layoffs happen there will be fewer dollars circulated in the economy affecting many more businesses in the community. Tax revenues, state and local, will be affected.
· This moratorium is unfairly punishing those companies and their employees who are working in a responsible and safe manner putting people out of work and driving away jobs overseas. The government’s response has been disproportionate and punitive.
I also brought up to Director Bromwich that the Mobile area has the opportunity to serve as a hub for oil and gas activity in the eastern Gulf of Mexico as a result of our marketing initiative Offshore Alabama. This initiative is expected to generate many local jobs.
I will have other opportunities to talk to the media. Please let me know if I need to mention other salient points.
I would also like for you to go to the following web site and submit your comments to the BOEM if you have not already done so. We must all submit our comments!
7/6/2010 7:28:29 AM
Creation of The Gulf Coast Alliance for Economic and Environmental Resilience
The Gulf Coast Alliance for Economic and Environmental Resilience (The Alliance) began forming shortly after the Deepwater Horizon Oil Well exploded in the Gulf of Mexico on April 20. Coordinated by Chris Laborde of the New Orleans Regional Planning Commission, the group is comprised of Chambers of Commerce and other business support organizations in coastal Alabama, Florida, Louisiana and Mississippi, as well as several national groups, including the U.S. Chamber of Commerce’s Business Civic Leadership Center and the U.S. Chamber Institute for 21st Century Energy. The Alliance grew out of a need to respond to business concerns in the aftermath of the oil spill, and adopted the mission to protect, sustain and increase the economic vitality of the Gulf Coast Region. Since its inception, the Alliance has assisted its members in sharing pertinent, timely and accurate information, developed surveys to gauge the impact of the spill on coastal businesses, assisted its members in making claims for damages and lost business, and even facilitated its members entering into an Amicus Brief led by the U.S. Chamber of Commerce to uphold the halt to the offshore drilling moratorium proposed by the Administration.
The Alliance is also working with public sector agencies to respond to this disaster, including NOAA and the Gulf of Mexico Alliance (GOMA), to bring business and industry input to their efforts.
The Alliance’s goals:
7/2/2010 2:29:17 PM
Mobile Area Chamber and US Chamber Urges 5th Circuit to Uphold Halt to Offshore Drilling Moratorium
The National Chamber Litigation Center (NCLC) today filed a brief on behalf of the U.S. Chamber of Commerce, which was joined by 29 other Gulf Coast chambers of commerce and industry groups and U.S. Senator Mary Landrieu (D-LA), urging the U.S. Court of Appeals for the Fifth Circuit to uphold a federal judge’s decision to halt the six-month moratorium on offshore exploration in the Gulf of Mexico. The case is Hornbeck Offshore Services, Inc. v. Salazar, et al. “The economic losses inflicted by the moratorium are nothing short of staggering,” said Thomas J. Donohue, president and CEO of the U.S. Chamber. “Every day the moratorium remains in effect, the drilling rigs sit idle—which will force companies to redeploy their assets, sending jobs and revenue to foreign waters. And every day the moratorium remains in effect, American workers lose millions of dollars in wages.”
Although the repercussions of the moratorium are national in scope, nowhere are the hardships more apparent than in the Gulf Coast region, where the U.S. Chamber has been on the ground assessing the economic impact. As the U.S. Chamber’s Institute for 21st Century Energy has pointed out, the moratorium has halted both deep and shallow water exploration in the Gulf, which could lead to thousands of lost jobs and billions of lost government revenue in the coming months.
“Operations in the Gulf of Mexico support more than 150,000 jobs and account for more than 30 percent of U.S. domestic oil production,” said Donohue. “For that reason, the moratorium is not just a threat to the Gulf region’s economy, it’s a threat to our nation’s economy, energy security, and competitiveness. Oil that is produced in the Gulf is oil that America does not have to import from foreign countries, which will increase our energy security risk.”
On June 23, a federal judge lifted the administration’s moratorium on offshore exploration, explaining that the “the administration acted arbitrarily and capriciously in issuing the moratorium.” The administration appealed the judge’s decision to the U.S. Court of Appeals for the Fifth Circuit. The Chamber’s amicus brief defends the judge’s decision to halt the moratorium, arguing that the administration failed to adhere to the rule of law and abandoned evidence-based rulemaking.
“Businesses small and large depend upon the government adhering to the rule of law,” said Donohue. “According to Judge Feldman, the agencies have failed to articulate any good reason for suspending all drilling in the Gulf of Mexico.”
Joining the Chamber on the amicus brief are U.S. Senator Mary Landrieu, the Ascension Chamber of Commerce, Baton Rouge Area Chamber, Bayou La Batre Area Chamber of Commerce, Business Council of Alabama, Greater Houston Partnership, Greater Iberia Chamber of Commerce, Greater Lafayette Chamber of Commerce, Greater New Orleans Inc., Greater Shreveport Chamber of Commerce, Harvey Canal Industrial Association, Houma-Terrebonne Chamber of Commerce, Lafourche Chamber of Commerce, Louisiana Association of Business & Industry, Louisiana Association of Chambers of Commerce Executives, Louisiana Oil & Gas Association, Mississippi Associated Builders & Contractors, Mobile Area Chamber of Commerce, Natchitoches Area (LA) Chamber of Commerce, New Orleans Chamber of Commerce, Plaquemines Association of Business and Industry, River Region Chamber of Commerce, Ruston Lincoln (LA) Chamber of Commerce, Southern Crop Production Assn., St. Charles Parish, St. Tammany West Chamber of Commerce, East St. Tammany Chamber of Commerce, Southwest Louisiana Chamber of Commerce, and the Thibodaux Chamber of Commerce.
The amicus brief is available at: http://www.uschamber.com/assets/nclc/100702_offshoremoratorium_amicus.pdf 7/2/2010 1:36:13 PM
Port of Mobile Open - NO Delays, NO Disruption
The Port of Mobile is open and handling deep draft commercial traffic without incident or delay. Some heavier bands of oil sheen and oil began washing ashore Alabama’s coastline yesterday prompting additional measures in the response effort to curtail further damage and ensure commerce continues to flow. James K. Lyons, director and CEO for the Alabama State Port Authority, alerted the Port of Mobile maritime community today that “changing conditions along the coast has not and will not impact vessel traffic at the Port of Mobile. The USCG has established contingency plans to handle any vessel that may require vessel decontamination,” said Lyons.
Now in day 74 of the DEEPWATER HORIZON disaster, the Port of Mobile has been operating smoothly and efficiently. With each milestone in the disaster, port officials continue to address inquiries on port status from the shipping industry. “I guess when you are sitting in New Jersey or Pusan, Korea, trying to decide if the oil spill will impact the shipper, it is helpful to know that oil will not close this port or any other U.S. Gulf port,” stated Lyons. To date, NO inbound cargo ships at the Port of Mobile have arrived with oil on its hulls. “In fact, we know of only six ships that have undergone the decon process, and these vessels were directly tied to the response efforts in Mississippi Canyon,” Lyons added.
Port of Mobile officials remain in close contact with state and federal response authorities as oil migrates eastward and impacts Alabama’s coastline. Alabama State Port Authority officials worked with the U.S. Coast Guard, Environmental Protection Agency, the state’s environmental agency, and BP to affect a safe and responsible plan to handle vessel traffic in the event heavier oil appeared at anchorage or the entrance to the federal channel.
6/30/2010 7:00:48 AM
U.S. Chamber Presses Obama to Lift Drilling Moratorium
The U.S. Chamber of Commerce plans to write President Obama a letter urging him to lift the moratorium on deepwater oil drilling in the Gulf of Mexico as part of the trade group’s accelerated effort to push back against the ban.
The influence group for businesses said the administration needs to understand that all drilling has stopped in the Gulf, hurting a region already walloped by the spill.
"The moratorium might be relatively narrowly tailored, or intended to be relatively narrowly tailored," said Matt Letourneau, spokesman for the chamber’s Energy Institute. But with the administration likely to issue new drilling regulations, he said, the oil industry won’t make new investments because the costs are not clear.
"The entire industry in the Gulf is effectively shut down," Letourneau said. "There are no shallow leases that have been issued."
The timing of the chamber’s letter to Obama has not yet been decided, he added.
Obama late last month halted approval of new deepwater drilling permits and suspended drilling at 33 exploratory wells while an independent panel conducts a six-month study of offshore drilling safety. U.S. District Court Judge Martin Feldman last week ordered the Obama administration to lift its six-month ban on deepwater drilling, saying the government had not provided adequate reasoning for the blanket drilling ban. He issued a preliminary injunction blocking the Interior Department’s moratorium on new drilling in waters deeper than 500 feet (E&ENews PM, June 22).
Feldman has issued an order rejecting the Justice Department’s request for a stay while the government appeals to the 5th U.S. Circuit Court of Appeals.
Interior Secretary Ken Salazar has defended the moratorium. "The president and I chose to press the ’pause’ button, and that’s to let us have a chance to learn lessons, make sure measures are in place to make sure this never happens again," Salazar said. "It is important this moratorium stay in place until we can assure deepwater drilling can be done in a safe way. We are not there today"(Greenwire, June 23).
U.S. Chamber representatives attended a forum Friday in Louisiana sponsored by the Louisiana Association of Business and Industry and afterward decided to boost its outreach to the administration with information on the effect of the moratorium. Representatives from the Louisiana governor’s office, state work force commission, businesses leaders and economists discussed the impacts of the drilling ban, Letourneau said.
The chamber, meanwhile, is gathering data on the effects of the moratorium. Louisiana so far has lost 20,000 to 30,000 jobs and $150 million lost wages and over the next six months faces $425 million in lost wages, Letourneau said. The trade group also is compiling stories of those affected by the moratorium, Letourneau added.
The chamber may also bring Louisiana business representatives to Washington, D.C., to talk to officials about the moratorium’s effect, Letourneau said. 6/15/2010 9:31:14 AM
BP Updates Its Claims Process
Claims and the Deepwater Horizon Incident and oil spill in the Gulf of Mexico To File a Claim via phone or online
If you file a claim via the toll free number, 1(800) 440-0858
• You will be given a claim number by the call center. It is important that you keep your claim number. You will need this information. • After you have your claim number, a claim adjuster will contact you, or you can visit a claim center.
• If you visit the claim center, you will need to have documentation to support your claim and a photo ID.
• If you talk with a claim adjuster on the phone, documentation can be sent by mail, email, or fax.
• See below for what type of documentation is needed for each type of claim.
If you file a claim online at www.bp.com/claims:
• You will be called and provided a claim number, usually the same day.
• After you have your claim number, a claim adjuster will contact you, or you can visit a claim center.
• If you visit the center you will need a photo ID and documentation to support your claim.
• If you talk with a claim adjuster on the phone, documentation can be sent by mail, email, or fax.
• See below for what is needed for each type of claim.
Visit a claim center
You may visit one of the BP Claim Centers; however, we recommend that you first obtain a claim number by calling the toll free number 1(800) 440-0858. This will help avoid delays. Claim center locations can be found online at www.bp.com/claims.
Claims by mail
You may submit a claim via mail by sending it to: ESIS, One Beaver Valley Road, Wilmington, DE
19803
You should only file one claim. You can report different types of damages on the same form with the same claim number. Multiple claim numbers will delay the review of the claim. Claim adjusters will help you deal with any exceptions.
Supporting Documentation
You will need to provide photo ID and documentation supporting your loss. Below is
information about what is needed to support various claims.
Loss of income or net profit claim documentation can include:
• Tax records
• Trip tickets
• Wage loss statements
• Deposit slips
• Boat registrations
• Copies of your current fishing license
Commercial economic loss claims may require additional business specific records.
Property damage claims can require photographs and replacement or cleaning receipts.
Larger property damage claims may require on-site inspection by a claim adjuster.
Loss of rental claims can include prior occupancy rates, cancellations, tax records, and bookkeeping records.
Bodily injury claims are not payable under the Oil Pollution Act of 1990; however, BP will evaluate each bodily injury claim submitted on a case-by-case basis. You will need to provide medical records, medical bills, or pharmacy records to support the claim.
Loss of Income or Net Profit
Second Payments
Loss of income or net profit payments are made in advance because individuals and businesses need to pay their bills. If you were given an interim advance payment for loss of income or net profits before June 1, you are eligible for a second payment. The second interim advance payment will be for the same amount as the first payment you received. No check will be reduced. Individuals and businesses will receive their second payment about 30 days after their initial advance payment was received. For example, if you received a payment on May 15, you will receive a second interim advance payment about June 15. Checks will be mailed to you along with a letter that is printed in four languages – English, Spanish, Vietnamese, and Khmer. If you are receiving your first interim advance payment in June, the claims center will communicate with you about any further possible payments.
Supplemental Payment
If you have losses that are larger than the amount of any interim advance payment, you must work with a claim adjuster to discuss the losses. Those who have provided documentation that demonstrates the losses actually incurred are larger than the total amount of interim advance payments received will receive a supplemental payment for the difference. This payment will be provided by a claim adjuster after talking with the individual or business owner.
Translators Available
Some of the claim offices are staffed with translators including the following:
For Vietnamese: Bayou La Batre, AL; Bay St. Louis, MS; Biloxi, MS; New Orleans, LA; Boothville-Venice, LA; Gretna/Belle Chase, LA
For Spanish: Bayou La Batre, AL; Bay St, Louis, MS; Orange Beach, AL; Mobile, AL;
For Khmer: Bay St. Louis, MS
BP community offices also have translators. Additional translators will be provided as needed at claims centers. For an updated list, please see the web site www.bp.com/claims.
Help after you file a claim
To check on a claim if you have a claim number and have not heard from a claim adjuster, call 1 (800) 573-8249.
0
Items Covered
BP will pay all legitimate claims for damages resulting from the oil spill and necessary response costs. This includes:
• Property damage
• Net loss of profits and earning capacity
• Subsistence loss and natural resource damage
• Removal and cleanup costs
• Cost of increased public services
• Net loss of government revenue
BP also will evaluate all claims for bodily injury even though they are not payable under the Oil Spill Pollution Act of 1990.
Contact Information
1 (800) 440-0858 - To file a claim
1 (800) 573-8249 - To check on a claim if you have a claim number and have not heard from a claim adjuster
To submit a claim by mail:
ESIS
One Beaver Valley Road,
Wilmington, DE 19803
To submit a claim online or find a claims center near you, you can go to one of the following:
www.bp.com/claims
www.ms-response.com
www.al-response.com
www.la-response.com
www.fl-response.com
Online Materials are available in Spanish and Vietnamese.
Forms are available in Spanish at
In Vietnamese at http://www.bp.com/iframe.do?categoryId=9033799&contentId=7062420
6/11/2010 8:49:49 AM
Information for Small Businesses Interested in Participating in Oil Spill Cleanup
If you are a small business wanting to assist in cleanup in the aftermath of a disaster, you need to do the following:
FIRST STEP
Register in the Central Contractor Registry (CCR) at www.ccr.gov. The FEMA Disaster Response data base collects its information in the CCR. Once you have accessed the website, go to “Help” link on the top of the page and read the CCR Handbook. It will tell you all the information you will need to register. To begin your registration go to the CCR Home page and select “Start a New Registration” on the left hand side of the page.
After you complete the required elements, go to the Disaster Response page (see “Optional Information” on the left had side of the page). FEMA established its Debris Removal Contractor Registry (DRCR), specifically for state and local governments to use to identify and pre-qualify available debris removal contractors. All vendors interested in doing business with FEMA should send an e-mail to FEMA-Industry@dhs.gov.
Small Business should also complete SBA’s Supplemental Page at the end of the registration.
CCR Customer Service Contact Information Toll-Free Phone Number 1-888-227-2423 CCR Email: ccr@bpn.gov Hours of Operation are 9 - 5 (EST) Monday - Friday. Voice mail messages will be taken if all lines are busy; all calls will be returned.
SECOND STEP:
The Army Corps of Engineers also has its Disaster Resource Contractor Registry at http://www.lrl.usace.army.mil/DisasterEquip/ (firms must also be register in CCR). The Corps of Engineers has developed this contractor registry for assistance with their disaster response mission. The Corps of Engineers uses its engineering and contracting capabilities to support FEMA and other Federal, State and local government agencies in a wide variety of missions during natural and man-made disasters.
Information in this registry will be used by Corps of Engineers offices that are looking for specific goods or services during emergencies. Submission of information is voluntary. Information will be considered For Official Use Only within the Federal government. Submission of information to this registry DOES NOT expressly or implicitly commit the Federal government to procurement of products or services
For any questions regarding the Army Corps Contractor Registry, please email disasterresponsereg@lrl02.usace.army.mil.
OTHER RESOURCES
FEDBIZOPPS
Once you have registered with CCR, you can go to http://www.fedbizopps.gov. This is the single government point-of-entry for Federal government contract opportunities over $30,000. Managed by the General Services Administration, FedBizOpps allows businesses to sign up for e-mail notification of open contracts related to specified fields. At the website, on the right hand side, under Related Links, click on “Vendor Notification Services”, which will allow you to receive email alerts by contract number, classification or all contract notices.
You can reach the FedBizOpps Help Desk by clicking on the “Help Desk” link on the bottom of the FEDBIZOPPS web page, calling 877-472-3779 or sending an email to fbo.support@gsa.gov. The Help Desk is open between 8am and 6pm EST (M-F).
Procurement Technical Assistance Centers (PTACs) form a nationwide network of procurement professionals dedicated to providing you: www.aptac-us.org
1. An understanding of the requirements of government contracting, and the know-how to obtain and successfully perform federal, state and local government contracts.
2. At little or no cost, PTACs provide a wide range of assistance covering every phase of government contracting – from initial registrations through contract completion.
Small Business Development Centers: Offer One-stop assistance to individuals and small businesses by providing a wide variety of information and guidance in local, easily accessible branch locations. http://www.sba.gov/sbdc/sbdcnear.html
For any other contracting opportunities, please contact the state, county, or other local municipalities in the area that you would like to do business in, to find out what is available and what their requirements may be. 5/17/2010 9:52:02 AM
Fact Sheet for SBA Economic Injury Disaster Loans
Gov. Bob Riley on Thursday announced the U.S. Small Business Administration has approved his request to aid businesses that have been financially impacted by the oil spill in the gulf. 5/14/2010 7:41:44 AM
SBA Disaster Loans Now Available for Mobile Area Small Businesses Impacted by the Oil Spill
Gov. Bob Riley on Thursday announced the U.S. Small Business Administration has approved his request to aid businesses that have been financially impacted by the oil spill in the gulf. Gov. Riley requested and the SBA approved an Economic Injury Disaster Loan declaration. The declaration applies to Mobile, Baldwin, Clarke, Escambia, Monroe and Washington counties in Alabama. “BP is the responsible party for this disaster and we continue to encourage Alabama businesses that have suffered economic loss due to the oil spill to file claims with BP,” said Governor Riley. “However, help from the Small Business Administration is available and is a tool that employers who have been hurt by the oil spill may want to use.” SBA disaster loans will be available to qualified businesses and nonprofit organizations in the approved counties. Businesses that want to file a claim with BP can call 800-440-0858 or file at claims offices on North Wintzell Avenue in Bayou La Batre or 1506 North McKenzie Street in Foley. 5/12/2010 8:22:27 AM
Tourism Necessary for the Alabama Gulf Coast
May 10, 2010 Dear Fellow Chamber of Commerce Executives and State Business Leaders: As we write this to you, we are into the twenty-first day of dealing with one of the most important environmental and economic challenges that our area and our state has faced in many years.
On April 20th, an explosion and fire occurred on the Deepwater Horizon oil drilling platform approximately fifty miles into the Gulf of Mexico off the coast of Louisiana. Tragically, eleven members of the rig’s crew were killed that night in the horrific accident.
The potential environmental impact of this accident is unprecedented and the economic challenges that it could bring to our area are equally enormous. Yet, we who live and work on the Gulf Coast have been confronted with and have successfully responded to difficult challenges before. With your help and assistance, we will rise to this occasion, as well.
No one knows when or if the oil that is leaking from the site of the undersea well will reach our Gulf Coast beaches and back bays. Clearly, the immediate need is to shut off the oil at the source, and we believe at this time that all that can be done is being done to achieve this critical objective. Currently, our beaches are clean and there is no clear evidence of oil or oil by-products reaching our shores.
Our local elected officials and business leaders have come together as a team like never before. They are working closely with Governor Bob Riley, members of his Cabinet, officials from the Alabama Department of Public Health and the Alabama Department of Environmental Management to ensure that the public health is maintained and protected.
Massive amounts of work have been done to attempt to keep the oil off our beaches and out of sensitive areas such as Mobile Bay, while at the same time maintaining important economic engines such as the Port of Mobile and the Alabama State Docks that act as an essential economic artery for businesses throughout our state.
Our local and state officials are also working closely with our federal officials, including Congressman Jo Bonner and Senators Richard Shelby and Jeff Sessions, to ensure that all available resources are brought to bear and provided to local and state responders.
Our greatest challenge, at this point, is the potential impact that this oil spill may have on our local economy and, potentially, on the economy of the state of Alabama. In Baldwin County, there are more than 40,500 tourism-related jobs with $2.3 billion in travel-related expenditures. In Mobile, there are more than 15,700 jobs with $820 million in travel-related expenditures.
We were poised for an excellent tourism season in 2010, with a potential increase in tourism activity, rental bookings and a resultant positive economic impact for our region and the state as a whole. Now, we are suffering from a large number of cancelled reservations and a general slowdown in our economy, just as the critical summer tourism season is set to begin.
Our local officials are working with Governor Riley, State of Alabama Tourism Department Director Lee Sentell, Gulf Shores Convention and Visitors Bureau President and CEO Herb Malone, and others to develop an advertising campaign to help impress on our guests and visitors that our beaches are clean and that we are open for business.
There are several things you can do to help us. First, keep us in your thoughts and prayers. We know that Divine providence and intervention can give us strength, courage and wisdom to deal with all challenges in life, including these. Second, please let your business friends and colleagues know about the important role that our area plays in the vital tourism economy in our state.
Tourism generates thousands of jobs throughout Alabama and billions of dollars in positive economic impact. Baldwin and Mobile counties account for over 35% of the overall tourism economy of our state.
Finally, and most importantly, come and visit! Encourage your friends, family and business colleagues to do the same. We need you to come here and enjoy our Gulf Coast now more than ever! Our beaches are clean; the restaurants are open and packed with fresh seafood; local fishing guides are ready to hit the Gulf and back bays; the pools are sparkling, and the weather is sunny and warm. You won’t find friendlier faces or more gracious and appreciative hosts than you will at our Alabama Gulf Coast right now.
We say, “our Alabama Gulf Coast” for a reason. We are lucky to live down here, but the Alabama Gulf Coast belongs to all of us. It is a resource and a blessing that God has given every Alabamian. With your help and support, and with His guidance, we will get through this challenge and continue to be an economic resource and a source of pleasure and recreation for generations of Alabamians to come.
We thank you for your time and support. Please call on us if you have questions or suggestions on how we can work together to deal with these challenges.
Sincerely,
Linda Whitlock, President & CEO, Alabama Gulf Coast Chamber of Commerce
Donna Watts, President & CEO, South Baldwin Chamber of Commerce
5/6/2010 2:38:28 PM
Update on Oil Spill from the Mobile Area Chamber of Commerce
Six days ago, the Mobile Area Chamber of Commerce updated its members, and readers of The Business View Weekly with the latest available information (at the time) on the oil spill in the Gulf of Mexico. Since the last update, as Rear Admiral Mary Landry with the U.S. Coast Guard stated, “we have been given a gift of time,” and additional preparations are being put in place. 5/1/2010 8:41:45 AM
Mobile Area Chamber of Commerce - Oil Spill Information
Over the past three days, the Mobile Area Chamber of Commerce has, like all of you, watched the media reports and countless news conferences about the oil spill. While all of us are extremely concerned about the environmental impact it will have on the central Gulf Coast, and most importantly along the Alabama coast and Mobile, it has been a priority of the Mobile Area Chamber to provide its members with the most up-to-date, and accurate information. We did not want to send you information that had not been verified, and that would later need to be corrected.
Other important information for you to use and share:
2/24/2010 3:42:35 PM
Statement from the Mobile Area Chamber of Commerce on the Tanker RFP Released Today
The Mobile Area Chamber of Commerce defers to Northrop Grumman and EADS, and we fully support whatever decision they make regarding a bid on the tanker, as it is ultimately a business decision for them. At this time, we do not have a full understanding of the changes in the new RFP released today as it relates to the draft that was released in September 2009. However, we believe the decision of the U.S. Air Force to award the contract to Northrop Grumman in 2008 was the appropriate decision based on the best value for the war fighter and the American taxpayers. If the current RFP uses similar guidelines for best value, the Chamber believes Northrop Grumman and EADS will emerge as winners once again. 10/2/2009 2:24:25 PM
U.S. Air Forces aerial refueling tanker
A Request for Proposals has been released for the U.S. Air Force’s aerial refueling tanker. Randy Belote, vice president of strategic communications for Northrop Grumman said, “Northrop Grumman applauds the Defense Department and the U.S. Air Force for re-starting the effort to replace its Eisenhower-era KC135 aerial refueling tankers, and the company is looking forward to competing for and winning the contract again.” Mobile is ready to win it again too. Northrop Grumman and EADS have the full support of the Mobile Area Chamber, Mobile County and the city of Mobile. In other economic development news, on Thursday, Sept. 24, Gov. Bob Riley announced HK Motors had selected a 3,000 acre site off I-65 in Bay Minette (north Baldwin County) for a hybrid automotive manufacturing facility. The Mobile Area Chamber would like to congratulate the Baldwin County Economic Development Alliance and the Alabama Development Office, as well as the many businesses and government officials who continue to work this project. As you might imagine the Mobile Area Chamber has fielded dozens of telephone calls and e-mails since this announcement on what Mobile County’s role might be in a project of this magnitude. We recognize a project of this size (6,000 workers and a $1.5 billion investment) will impact the surrounding counties in our region, and especially Mobile County. Not only will this facility have a net-positive impact on the Port of Mobile, but also to local steel manufacturers. We will be able to recruit Tier I and Tier II suppliers (i.e.- engine manufacturing, metal stamping, interior automotive manufacturers) to the Mobile Bay region. All of this will be done in support of Baldwin County, and the State of Alabama. It is also important to note neither the Mobile Area Chamber, the city of Mobile and Mobile County, nor the city or county industrial development boards have invested or committed any capital or in-kind services toward this project. HK Motors and the State of Alabama will not begin any incentives negotiation until the company has raised the necessary capital to fund this project. 4/27/2009 4:20:53 PM
Win Hallett’s China Trip Blog March 12-20, 2009
Introduction In mid-March, Win Hallett and 32 other U.S. Chamber executives traveled to China, visiting Beijing, Hangzhou, Suzhou and Shanghai. The trip served as an exploration tour for Chamber representatives who were scouting out future opportunities for their Chambers back home.
The week-long trip organized by the American Chamber of Commerce Executives (ACCE), connected Chamber executives with U.S. companies already doing business in China and built relationships with those who can assist U.S. businesses in entering the rapidly-growing economy.
Chris Mead, ACCE’s senior vice president, said the Chamber executives’ trip was a Business Connections Tour that served as the mid-winter meeting of the ACCE’s Metro Cities Council. The council is made up of leaders of the 140 largest U.S. Chambers, which includes those with metro populations of more than 250,000.
He said the trip was organized and led by tour operator Leo Liu of Citslinc International, of Monterey Park, Calif. Founded in 1995, Citslinc has led trips for individual Chambers and communities.
“This was the first of its kind with 33 Chamber execs. This was a pretty influential group,” Mead said of the Chamber leaders whose groups represent the nation’s major business interests in an article published in the Quad Cities Times, Davenport, IA. “(The group’s influence) was not lost on those we met in China.”
Citslinc will serve as tour promoter for the Mobile Area Chamber trip in October.
Day 1 – Thursday, March 12
We were a group of 33 Chamber execs (some with spouses and some who also brought their children) from all over the United States. Leo Lui’s company, CitsLinc International, sponsored this trip for members of the Metro Cities Council of the American Chamber of Commerce Executives. The trip was similar to what the Mobile Area Chamber China Trip participants will experience in October, except our trip also included diplomatic and business meetings in Beijing and Shanghai.
We left Los Angeles on China Eastern to Shanghai around 2 p.m. and changed planes to end up at Beijing late Friday evening. All transfers were taken care of and the luggage was loaded on the bus and delivered to our rooms. The flight was long, but comfortable, and the food was…. well, airline food with some oriental twists.
Day 3 - Saturday, March 14 (You’ll note this says day 3, due to a day lost flying and resting before the tours began)
Everything started very early and we began the day with a good breakfast before a meeting with Sarah Kemp from the U.S. Embassy in Beijing. Sarah did an outstanding job of giving an overview of the current Chinese economic status and the opportunities and challenges facing China. Currently China’s GDP is $4.42 trillion and the goal is to quadruple it in 20 years, which implies a 7.3 percent annual growth. A similar optional meeting will be arranged for our October group for those who are interested.
We then had a Hutong (in Beijing, hutongs are alleys formed by lines of traditional courtyard residences) tour by pedi-cab (rickshaw) to see the old Beijing alleys and old way of life. After lunch we paid an official visit to meet with the vice mayor in the Beijing Municipal Government offices.
Later in the day, we enjoyed an extended tour of Tiananmen Square, the largest square in the world. Many of the people there were taking pictures of us! We finally figured out that they were probably from the western part of China and had not seen Westerners before – so, we were the novelty.
Later, we had dinner at the famous Quan Ju De Peking Roast Duck Restaurant, which hosted President Richard Nixon many years ago. The food was good and the beer okay. We drank lots of bottled water.
Day 4 – Sunday, March 15
After breakfast, our bus took us to the Great Wall of China. A bit of friendly advice in advance -- do your Stairmaster training often, and well in advance of your October trip, before tackling this world famous landmark. Many of the steps are almost straight up and they are never-ending! Fantastic pictures and angles abound. You can have your picture taken in Chinese garb for 30-50 Yuan (or RMB), about $4-$7, to send out to friends as holiday cards.
Speaking of dress, I would recommend planning to dress in layers so that you can put clothes on and remove them as needed. Beijing is at latitude 39.55 degrees and the wind can get your attention climbing the Wall. Upon returning to your bus, there will be bottled water and some beer.
A tour the Cloisonné factory and showroom was next. Lunch was served upstairs, followed by shopping for some amazing gifts. And remember, everything, everything is negotiable: don’t take the list price or even the second price.
Following lunch we visited the Summer Palace where The Last Emperor was filmed. The palace is known for the Long Corridor with painted gallery, the Kunming Lake and Longevity Hill, and was home to the Dragon Lady who was the concubine and mother of the last emperor.
Because our business meeting ran longer than expected, we did not visit the Forbidden City that was home to 24 emperors and has 9,999 rooms. This is where the movie, Crouching Tiger, Hidden Dragon was filmed. I viewed it again upon returning, and you may want to watch it before traveling to China in October.
That evening we met at Junwangfu Peninsula Restaurant where Chinese maidens ushered us into a courtyard for cocktails and dinner. We enjoyed their dragon dances and drummers in costume. We dined with Wang Jinzhen, vice chairman of the China Council for the Promotion of International Trade. He was very quick to point out the amazing growth of their economy and was clear about their intention of surpassing the size of the U.S. economy in the next few years.
Day 5 -- Monday, March 16
We left for the Beijing airport for a two hour flight to Shanghai. My seat was 43G and was the last row and against the bulkhead. The fellow in front of me put his seat back and was almost in my lap. There was no way to let the tray table down. When the stewardess came by with the cart for sandwiches, the Chinese person sitting next to me slapped the back of the seat in front and the person did move the seat more upright. It ran through my mind that if I had tried to do that, there was the possibility of an international incident.
That afternoon we toured the Bund, Shanghai’s famous waterfront. The scale of buildings on the new side of the Yangtze River is absolutely astounding. One building that houses a broadcast tower is in the shape of a Christmas tree ornament and is about 30 stories tall.
Everywhere we went people were talking about the World Expo that Shanghai will host next May to October. Shanghai is expecting 60 million visitors and will be spending $83 billion to prepare for and stage the six-month event. Before May, 2010, the highway we came in on will be buried to make more space for the tourist on the waterfront.
By the way, Shanghai just opened their second airport terminal that will provide capacity for another 40 million passengers per year. And, they have the third terminal on the drawing board!
Day 6 – Tuesday, March 17
We had two presenters Tuesday morning at our business meeting. Brenda Foster is the president of the American Chamber of Commerce in Shanghai, the second largest Chamber in the world after Sao Paolo, Brazil. She did a terrific job in giving us insights into the Chinese economy. Annually, the U.S. and China do $338 billion in trade. China is our third largest export market.
Ms. Foster acknowledged that China’s Achilles heel is their healthcare system. The quality of that system and their ability to deliver to 1.4 billion people is more than problematic. Their education system is also struggling to keep up and their environment is under great pressure. Their rivers are taxed and the country does not have enough potable water.
In Beijing, there are no old cars to be seen. When asked about that observation, the response was, “Ten years ago there were 400,000 cars in Beijing, now there are 4 million and 400,000 are being added each year.” This exacerbates their air pollution problem everyday. The Chinese government signed contracts to have energy plants powered by natural gas and when the price tripled to $12/mcf, they cancelled the contracts and are now building 100 coal-fired plants per year. (At the same time, we are dealing with legislation that would place a cap and trade system for carbon emissions on utilities, ultimately making us less competitive in the global market. Under such a bill, electricity providers would be given a fixed number of pollution allowances, every allowance equaling one ton of carbon dioxide pollution a company is allowed to emit. Ironically, if China continues to build coal-powered plants in these numbers, it will matter little what the U.S. does to contain carbon emissions.)
To do business in China successfully, homework, due diligence and flexibility are required. Everything is negotiable and the learning curve is steep.
“China is not for everybody – it is a country in transition. If you don’t handle ambiguity well, China is not for you! China is exciting and dynamic with great opportunities, but also great risks,” said Rodger Lindsay, senior vice president, Asia Pacific, The Timken Co.
After the business meetings, Andrew Rudnick (president of the Buffalo, NY Chamber), Tim Sheehy (president of the Milwaukee Chamber) and Tim’s son Ryan and I rented a car and driver to visit several areas of Shanghai. Tim has been to China seven times and Milwaukee has a Chinese sister city unpronounceable by me.
We first drove to an area where there was a large European enclave known as Shin Tin De (at least phonetically). Very nice shops, cafes, fountains and large flower pots and shrubbery were to be found in a number of arcades that could have been mistaken for many parts of Europe. My comment at lunch was, “If you didn’t know where we were, you would not know where we are.”
And, since it was March 17th (St. Patrick’s Day) we decided to visit O’Malley’s (Shanghai) where Guinness was celebrating its 250th birthday. A number of expatriate’s wives were there with their children playing on the grass and swing sets. It was quite an interesting afternoon hearing all the different accents.
We waited for Bob Morgan (president of the Charlotte Chamber) and his wife to join us for a beer. O’Malley’s gave out some hats and of course we had pictures made, but left before the rowdies showed up.
Day 7—Wednesday, March 18
A chartered bus carried our group to Hangzhou where we took a boat cruise on West Lake before lunch. One of our participants was Phil Parker (president of the Dayton, Ohio Chamber). He has white hair and a matching beard. Several Chinese individuals came up to him and wanted their picture taken with him. It turns out that they thought he was Kenny Rogers and he told them no different.
That afternoon we visited the centuries-old Lingyin Temple, whose main feature is the 64-foot-high, camphor-wood carved Buddha. There were lots of people going through the various shrines.
Then back to the hotel to change for dinner with the vice mayor and distinguished guests and a show.
Day 8 – Thursday, March 19
We took our chartered bus to Suzhou and visited the Lingering Garden and Tiger Hill, home to the leaning Temple. We saw many fascinating bonsai trees and the flowers were gorgeous. The temple is leaning because part of it was built on rock and the other portion on settling dirt. Who would have thought of that?
We then saw a canal referred to as the Venice of the East – I could not make that reach. We later toured the silk factory and made a few purchases. The merchants were really pushing the silk bedding, but as another friend, Gary Toebben (president of the Los Angeles Chamber) said, “Just say no!”
That evening we met with the Mayor of Suzhou, Yan Li, and their director of tourism administration for the last formal dinner of the trip.
Day 9 – Friday, March 20th
The last day of the trip was spent on a bus ride back to Shanghai Pudong Airport for a 2:50 p.m. departure that arrived back in Los Angeles at 11:30 a.m. the same day. Our translator and guide for the last three days took the Anglicized name of “Jackie,” and left us with the admonition that we not speak to him in the airport by name, such as “Hi, Jackie!” (It was as poor then as it is now, sorry.)
All in all, it was a truly amazing trip and I’m glad to have had the experience.
Travel notes:
China facts:
Potential business targets:
Industries that could provide business opportunities for U.S. companies:
Sources: U.S. Department of Commerce, CIA World Factbook, The US-China Business Council, Quad Cities Times. 2/17/2009 11:03:25 AM
Chamber Business and Community Leaders Fly-In to Washington D.C.
Twenty-seven business and government leaders traveled to Washington, February 9-11, to present the Chamber’s federal agenda to Alabama’s members of Congress. The purpose of the annual Washington Fly-In is for business leaders who have federal interests which could impact SW Alabama to present a mutually agreed upon list of federal priorities. For almost 10 years, this visit has resulted in a coordinated effort to secure funding for local projects and has helped to solidify positions on important pro-business policies.
This year, Capitol Hill meetings were held individually with Sen. Richard Shelby, Sen. Jeff Sessions, Rep. Jo Bonner, Rep. Artur Davis and their chiefs-of-staff. An evening reception was hosted by the University of South Alabama for the staff of all seven Alabama Congressmen and our two senators; and a smaller dinner the following evening was given by Hand Arendall LLC for Sen. Shelby, Sen. Sessions and Mr. Bonner. The trip concluded with a breakfast for Mr. Bonner sponsored by Airbus.
It was a very exciting time to be on Capitol Hill as the economic stimulus package was being debated in Congress. Some members of our group received gallery passes to watch this historical vote in the Senate on February 10.
Among the priority issues shared with the members of Congress, there are four that drew the most interest and discussion.
Other items on the Chamber’s federal agenda include, containment of health care costs, transportation and energy infrastructure investment, immigration policy reform, workforce training, tax reform and increasing domestic supplies of energy. 2/5/2009 8:58:56 AM
A Mobile Area Chamber White Paper
ThyssenKrupp Stainless 3 February 2009
Here are three hot topics we expect you’ll be asked about. Below are key messages to help you understand the ThyssenKrupp Stainless § It is important to remember this is only a delay, and at this point is estimated at 12-months, bringing the timeline to October 2010. § TK has not ramped up the stainless operations yet so there are no expected layoffs, according to company officials. The few folks the company hired will be reassigned. § It is a postponement of one year, and ultimately we expect no change in number of jobs, the amount of investment or its economic impact. § TK Steel is moving forward as scheduled, headed for a 2010 opening. TK originally announced in 2007 that its 3,500 acre site will generate approximately 29,000 jobs during the construction phase. When fully operational, the plant will employ 2,700 people. Average annual wages are estimated between $50,000 and $60,000. Over a 20-year period, the facility is also expected to yield 30,000 to 52,000 indirect jobs. The project remains one of the largest private investments in ----------------------------------- Northrop Grumman’s Bid for the Tanker Key Messages: Rep. Jo Bonner and Rep. Artur Davis arranged for Rep. John Murtha, chairman of the House Appropriations Subcommittee on Defense, to visit § It seems momentum for a split contract continues. Murtha has been quoted as saying a split contract will be inevitable if the U.S. Air Force wants the tanker soon. Defense Secretary Robert Gates is on the record as being opposed to a split contract because of anticipated additional costs. § Gates committed to a new competitive bid process expected to start as early as this spring and awarding the contract early in 2010. § A split contract means a faster ramp up time, and will still have a huge impact on the § The Chamber is continuing its support and lobbying efforts for this critical project that will impact thousands of Northrop Grumman was first awarded the contract in February 2008. As a result of competitor Boeing’s protest, a government review panel found problems with the initial bids. Gates made the decision to postpone the re-bid late in 2008 until after the presidential election. This is an estimated $40 billion contract to buy 179 new aerial refueling tankers to replace the U.S. Air Force’s aging fleet over the next 15 years. Should Northrop Grumman win the contract again, the aircraft will be built in
The Local Economy Key Messages: § We live in tough times, yet § Our economy is not dependent on any one industry, and instead a variety of business sectors will help us weather the recession. § Don Epley PhD with We understand economic times are uncertain and tough. It is worth noting that 9/22/2008 9:25:25 AM
BCA Briefs Small Businesses on Tax Deduction for Health Insurance
BCA Director of Legislative Policy Victor Vernon briefed members of the Mobile Area Chamber of Commerce on the Small Business Health Insurance Premium Deduction Enhancement Bill recently signed into law by Gov. Bob Riley. Vernon, when outlining aspects of the legislation affecting small business owners, said small businesses will receive “a very meaningful tax break” from the legislation because they will be able to deduct 150% of the cost of employee health insurance from next year’s state income taxes. 9/11/2008 9:05:43 AM
So, What’s Going On at the Chamber? Author: Susan Rak-Blanchard
10 September 2008 U.S. Department of Defense Cancels Tanker Project
We expect that you’ll be asked for your comments on this latest development. Below are key messages and the story that will run in the November issue of The Business View.
Key messages:
1. Because the U.S. Department of Defense (DoD) cancelled the tanker project our warfighters lost out on a new weapon system they desperately need now. The Air Force selected the best and our warfighters must continue flying 50-year-old planes.
2. With the decision, Alabama lost 5,000 jobs, the Central Gulf Coast – thousands more, and all Americans have lost out on 48,000 new U.S. jobs – across all 50 states.
3. DoD set a new and dangerous precedence by allowing politics to influence the acquisition process and cancel a priority program.
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With emotions running hot and words running hotter, Mobile area officials talked with more than 120 national media via a conference call Wednesday, Sept. 10 to express their outrage at the U.S. Department of Defense’s (DoD) decision to cancel the Air Force refueling tanker competition valued at close to $35 billion and with it, thousands of jobs for area residents.
The Mobile delegation of elected officials and industry representatives, including the Mobile Area Chamber and Mobile Airport Authority are frustrated, but determined to stand behind Northrop Grumman as it regroups in its pursuit of the competition by the rules set forth by the Department of Defense. Critical economic development resources are involved at the state and local level with no clear timeline when the project would reemerge, although speculation puts it in the 2010 - 2015 budget.
The messages sent from Mobile, Ala., the day the announcement was made were that first of all, because of the cancellation of the current competition, warfighters have lost out on a new weapon system they desperately need now. “The U.S. Gulf Coast lost more than 5,000 jobs, and the country lost a total of 48,000 jobs, as the original decision to grant the tanker project to Northrop Grumman and its contractor EADS became a victim to the political process,” said Stephen Nodine, president of the Mobile County Commission.
In the words of Mobile Mayor Sam Jones, “The Department of Defense set a new and dangerous precedent in allowing politics to control the outcome of what is best for our country.”
“This is the second time Boeing and its supporters hijacked the competition, and cost the warfighter and the taxpayer time and money,” added Win Hallett, the Chamber’s president.
Retiring Mobile Airport Authority Executive Director Bay Haas said, “We still have the superior product. One that is built, tested and proven. This was a political fight, make no mistake about it.”
“The Department of Defense, as recently as last week, stated the urgency to replace the Eisenhower-era fleet of refueling tankers. With this delay, it is conceivable that our warfighters will be forced to fly tankers as old as 80 years of age,” said Randy Belote, Northrop Grumman vice president, strategic communications.
“Northrop Grumman entered this competition in good faith and proposed the most modern, most capable tanker available, at the best value to the American taxpayer.”
Upon waiting for a formal statement from Northrop Grumman CEO Ron Sugar, company officials reiterated its commitment to both the project and building aircraft in Mobile.
Just a few weeks prior to this latest development, Defense Secretary Robert Gates said the tanker project was a top priority. Officials have since stated they will be able to maintain the current fleet built during the Eisenhower administration, nearly 50 years ago.
U.S. Sen. Richard Shelby, was quoted in the Press-Register, calling the announcement “unacceptable.”
“This misguided decision clearly places business interests above the interests of the warfighter...This approach is irresponsible, shortsighted and harmful to both the warfighter and the nation.”
Rep. Jo Bonner, Sen. Jeff Sessions and Gov. Bob Riley also issued statements:
“The secretary says his decision was necessary because DoD could not make an award before the end of this presidential administration. That is flawed thinking. Competitions should be non-political processes carried out by the career professionals in the military. They frequently bridge presidential administrations,” said Bonner.
“It is a very sad comment when our nation is engaged in two wars – in two different regions of the world – that DoD would abdicate its responsibility.” “As I have said repeatedly, the Department must remain steadfast in its commitment to a fair competition, free of political interference, aimed at selecting the aircraft that best meets the needs of the military. That was the Secretary’s position as recently as a month ago, and it is unthinkable that he would reverse course now,” commented Sessions.
“The Air Force originally determined that the Northrop Grumman/EADS proposal was the best aircraft for the military, and I remain convinced that its selection was justified. The successful conclusion of this competition remains my top priority.”
“I strongly disagree with this decision and find it absolutely bewildering. The Air Force has been trying for six years now to replace its aging fleet of tankers. Yet another delay does nothing except put our warfighters at greater risk. For that reason alone, I can’t understand why anyone would make this decision,” said Riley.
“At some point, we have to say we are going to put our warfighters first – not the suppliers, not politics.” 9/9/2008 11:15:39 AM
Mobile City Council Meeting September 3rd - Author is Shayla Jones Beaco
At the September 3 City Council meeting, the CSX construction contract was approved to create a quiet zone for trains traveling through the downtown area, particularly along the Water Street corridor. This measure came as a result of complaints made by patrons of the Battle House Renaissance Hotel and the Riverview Renaissance Hotel regarding the noise levels caused by train whistles traveling through downtown during late night hours. Upon completion of upgraded rail road crossings, track work, sensor installation and other needed improvements, trains traveling through downtown will no longer sound their whistles in the area north of the GM&O building to south of the Alabama Cruise Terminal.
Also during this meeting, Connie Hudson, District 6 councilperson and finance committee chairperson announced that a finance committee meeting would be held on Tuesday, September 16 at 2:00 p.m. to discuss the 2009 General Fund Budget. Ms. Hudson also confirmed with Al Stokes, chief of staff, that city staff persons responsible for budget preparation would be available to answer any questions. |