Wood Product Manufacturing

Target Industry: Wood Product Manufacturing

The Lake Martin Area currently has a concentrated and growing workforce in the wood products industry. In addition, wood products companies currently located in Lake Martin have seen momentum in recent years.

Based on Next Move Group’s research into the region’s industry supply chain, workforce, location advantages, and workforce training options, companies in this sector could have opportunities in the Lake Martin Region.

Opportunity – Wood Products Manufacturing

We have identified the following sampling of sub-industries as having opportunities in the Lake Martin Area:

  • Upholstered Household Furniture Manufacturing:
    148% growth in employment in the Lake Martin area over the last 5 years
  • Softwood Veneer and Plywood Manufacturing:
    58% growth in employment in the Lake Martin area over the last 5 year
  • Reconstituted Wood Product Manufacturing:
    35% growth in employment in the Lake Martin area over the last 5 years
  • Non-upholstered Wood Household Furniture Manufacturing:
    33% growth in employment in the Lake Martin area over the last 5 years
  • Corrugated and Solid Fiber Box Manufacturing:
    30% growth in employment in the Lake Martin area over the last 5 years
  • Other Paperboard Container Manufacturing:
    16% growth in employment in the Lake Martin area over the last 5 years

Wood Manufacturing Facilities in the Lake Martin Area

Based on both a supply chain analysis conducted by Next Move Group, the Lake Martin area has considerable advantages in the following wood manufacturing-related industries:

  •  Upholstered Household Furniture Manufacturing:  
    148% growth in employment in the Lake Martin area over the last 5 years

  •  Softwood Veneer and Plywood Manufacturing:   
    58% growth in employment in the Lake Martin area over the last 5 years

  •  Reconstituted Wood Product Manufacturing:  
    35% growth in employment in the Lake Martin area over the last 5 years

  •  Non-upholstered Wood Household Furniture Manufacturing:  
    33% growth in employment in the Lake Martin area over the last 5 years

  •  Corrugated and Solid Fiber Box Manufacturing:  
    30% growth in employment in the Lake Martin area over the last 5 years

  •  Other Paperboard Container Manufacturing:  
    16% growth in employment in the Lake Martin area over the last 5 years

  •  Prefabricated Wood Building Manufacturing:  
    14% growth in employment in the Lake Martin area over the last 5 years

  •  Engineered Wood Member (except Truss) Manufacturing:  
    13% growth in employment in the Lake Martin area over the last 5 years

  •  Wood Window and Door Manufacturing:  
    13% growth in employment in the Lake Martin area over the last 5 years

  •  Wood Container and Pallet Manufacturing:  
    7% growth in employment in the Lake Martin area over the last 5 years
  •  Sawmill, Woodworking, and Paper Machinery Manufacturing:  
    Average salary of $75,504 in the Lake Martin area

  •  Wood Office Furniture Manufacturing:  
    5% growth in employment in the Lake Martin area over the last 5 years

In our research of the surrounding region’s supply chain, the Lake Martin area benefits significantly from Wood manufacturing industries, showing that the region had advantages to target this industry.

  •   Wood Container and Pallet Manufacturing:  
    58 suppliers within the Lake Martin region

  •   Wood Kitchen Cabinet and Countertop Manufacturing:  
    2,984 suppliers within the region

Recent Momentum:

Recent $18 Million Sawmill Expansion




Coosa County, Al (WSFA) - Deep in the woods of Coosa County, lots of wood is being carved up, picked up and splintered. You think it's busy now? Wait until this time next year; a high tech sawmill will be added thanks to an $18 million expansion by Central Alabama Wood Products.

"I think this is fantastic," said Larry Jones, one of the co-owners of the company. Jones says the railroad industry was one of the driving forces behind their decision to expand.

"Average age of a cross tie lasts about 30 years, so it's the replacement cycle is what goes on," said Jones. "There are 20 million cross ties replaced every year."

There is an odd part to this expansion. There won't be any new direct jobs created. However economic leaders say an arrangement like this is not unusual.

"We'll stay pretty much stagnant," Jones said. But that's not the same as saying there won't be an impact. In fact, Jones estimates 40 new "indirect" positions will be added to the mix.

"Indirectly, we'll be adding truckers, more logging companies," Jones stated.

Once the new sawmill is built, the plant will double its capacity.

"We'll do it on a lot bigger scale," Jones said.

"It's not replacing jobs. It's refining the positions those people have, it's a lot of technology coming in." said Don McClellan, Executive Director of the Lake Martin Area Economic alliance. "A sawmill is not a sawmill anymore. It's a high tech industry."

High tech or not, it's still a heavy lift. A behemouth of a machine, for example, picked up 30,000 pounds of logs, worth its weight in gold when you factor in the comnpany's long term committment to Coosa County.

Copyright 2018 WSFA 12 News. All rights reserved.


Dadeville Pole Company plans to construct a new facility


Current Wood Manufacturing Support Companies

Current Wood Manufacturing Support Companies

Wood Manufacturing and Support Companies in the Lake Martin Area

IndusTREE Pole Wood products manufacturer
Central Alabama Wood Products Wood products manufacturer
Wellborn Industries Wood manufacturer
Wellborn Forest Products Cabinet manufacturer

 

Proximity to Major Markets

Proximity to Major Markets

The Lake Martin area is within proximity to multiple major markets, including:

  •  Atlanta, GA
  •  Miami and Tampa, FL
  •  New Orleans, LA
  •  Austin, Houston, and Dallas, TX
  •  Chicago, IL
  •  St. Louis, MO
  •  Charlotte, NC
  •  Detroit, MI
  •  Washington D.C.

 

When It Comes to Activities at Lake Martin, There’s More Than Just Boating!

 

Workforce

Wages

The table below outlines the average salary range for the targeted subindustries, showing that the region and its residents can highly benefit from increasing opportunities in these areas.

Subindustries

Wages

Upholstered Household Furniture Manufacturing

$49,460

Softwood Veneer and Plywood Manufacturing

$47,683

Prefabricated Wood Building Manufacturing

$46,060

Wood Office Furniture Manufacturing

$41,008

Engineered Wood Member (except Truss) Manufacturing

$37,410

Wood Window and Door Manufacturing

$35,705

Hardwood Veneer and Plywood Manufacturing

$35,651

Wood Kitchen Cabinet and Countertop Manufacturing

$31,516

Labor Availability

Labor Availability

11,121 People Drive Outside of the Lake Martin Area for Work, Every Day

This map shows that 4,893 people travel to Lake Martin area daily for work, proving that a good employer can draw labor from a wide radius. Additionally, this map shows that 11,121 people drive from the Lake Martin area to work in other regions, daily. Many of these 11,121 workers will consider working in the Lake Martin area, as more jobs are created.

In the region surrounding and including the Lake Martin area, manufacturing is the largest sector, employing 34,532 workers. Additionally, the sector has the second largest concentration in the area in comparison to the national average, with an average salary of $52,973.

 

Workforce Training Programs

Alabama Technology Network (ATN)

Alabama Technology Network (ATN)

Offers primarily manufacturing workforce development courses.

AIDT

AIDT

State-level workforce training program that provides free training for area businesses:

  •  Pre-employment screening and training
  •  Leadership development
  •  Industrial safety program
  •  Industrial maintenance technician assessment program

Ready to Work (RTW)

Ready to Work (RTW)

Operated by the Alabama Community College System in cooperation with AIDT, RTW provides a career pathway for individuals with limited educational and employment experience. Training mirrors the needs of Alabama’s industries and businesses and is free to participants.

Edward Bell Career Center

Provides the students in Tallapoosa County with training for high-skill, high-demand occupations that mirror local business and industry needs.

 

Colleges & Universities

Central Alabama Community College (CACC)

Central Alabama Community College (CACC)

Provides academic and technical degree programs for high-paying industries, including wood industry-specific workforce training programs such as:

  •  Associates in Science
    •  Forestry Career Path
    •  Agricultural Business Career Path
    •  Engineering Career Path
  •  Associates in Occupational Technology
    •  Machine Shop
    •  Welding
Auburn University

Auburn University

Auburn University is just 30 minutes from the Lake Martin area and is home to one of the nation’s top 20 engineering programs, by the number of program graduates. The University has been ranked #1 multiple times for being one of the best in terms of value and offerings. Auburn’s School of Forestry & Wildlife Sciences is currently celebrating its 75th anniversary. The school offers degrees in the following focal areas, that are relevant to the wood industry:

  •  Forestry
  •  Geospatial and Environmental Information
  •   Natural Resources Management
  •   Sustainable Biomaterials and Packaging
  •  Wildlife Sciences
Auburn
Troy University

Troy University

Troy University is located 2 hours from the Lake Martin area. For 15 consecutive years, Troy University has been named to The Princeton Review’s “Best in the Southeast” list. The University has multiple locations throughout the state, programs for international students, and dual enrollment for high school students, and international support programs. Troy has two programs that apply to the manufacturing sector:

  • Environmental and Biological Sciences
  • Environmental Science
Alabama State University

Alabama State University

One of the nation’s oldest HBCUs, located in Montgomery, approximately 1.5 hours from the Lake Martin area. The University offers both in-person and online delivery formats for a variety of programs, ranging from business administration to technology engineering and mathematics.

 

Transportation Infrastructure

transport1The Lake Martin Area is connected to Birmingham via Highway 280 and Interstates 65 and 85. The region is also directly connected to Montgomery by way of Highway 231. Additionally, both Auburn, Alabama and Columbus, Georgia are 1-2 hours away, via Highway 280. The Lake Martin area is connected to Mississippi by Interstate 20, Tennessee by way of Interstate 65, and to both Georgia and Florida by Interstate 75, making the region a prime location to do business.

US Highways

US Highways
  • Tallapoosa County is approximately 6 miles from HWY 280, and 30 miles from HWY 231

  • Coosa County is approximately 14 miles from both HWY 231, and HWY 280

Interstates

Interstates
  • Tallapoosa County is 26 miles from I-85, 53 miles from I-20

  • Coosa County is approximately 22 miles from I-65, 52 miles from I-85, and 45 miles from I-20

Rail

Rail

Norfolk Southern

  • One of the nation’s premier transportation companies

  • Operating in 22 states and the District of Columbia

  • Largest carrier of metals and automotive products in North America

  • Serving every major container port in the eastern US

 

Utilities

Gas

Gas

City of Dadeville
Located within Tallapoosa County, just an hour northeast of Montgomery.

Water

Water

Goodwater Water & Sewer Board

City of Dadeville
Located within Tallapoosa County, just an hour northeast of Montgomery

Power

Power

Alabama Power
Owns or operates 77 electric generating units with total nameplate capacity of more than 12 million kilowatts, offering a variety of power options throughout the state.

utilitiy1

 

Featured Real Estate

  • Russell Former Screenprint Building
    • 177,766 sq ft, 14.1 acres
    • Industrial building
  • Kwang Sung America
    • 40,000 sq ft, 7 acres
    • Industrial building
  • Lake Martin Regional Industrial Park
    • 327 acres
    • Industrial site
  • 295 Acres
    • 2450 Hillabee Road
    • Industrial site
  • William Thweatt Industrial Park
    • 150 acres
    • Industrial site
  • New Site Building
    • 5.19 acres
    • Industrial building


 

Incentives

Opportunity Zone Tax Incentive

Provides an innovate approach to spur long-term private sector investment in low-income urban and rural communities. This incentive offers a frictionless way to reinvest capital gains into distressed communities through Opportunity Funds, in exchange for incentives that are tied to long-term holdings.

Tax Incentive Reform Act Ad Valorem Tax Abatement

Imposed for public school purposes and for capital improvements for public education for a period not to exceed ten years (applies to both real and personal property). Those who may be granted the exemption: the governing body of a municipality located with a municipality or the police jurisdiction, by the governing county located in the county, and by the governing body of a public industrial authority, located within the jurisdiction).

Corporate Income Tax

The rate of corporate income taxes is 6.5% and is based on net taxable income of business done in Alabama. Businesses can deduct all of their federal income taxes apportioned to Alabama. Some incentives include net operating loss carryforward, deduction for pollution control equipment, income tax capital and Enterprise Zone credit, and basic skills educational tax credit.

Business Privilege Tax

This tax is based on net worth in Alabama and corporation’s ability to pay. The rate ranges from $.25 to $1.75 for each $1,000 of net worth in Alabama.

State Unemployment Tax

Employees do not contribute to this tax- employers are required based on the first $8,000 of each employee’s compensation. Rates for current employers vary from 0.5% to 5.4%, while rates for new employers is 2.7%.

Sales and Use Tax

This incentive includes abatements of state and non-educational local construction-related sales and use taxes. If taxes are paid in a timely manner, discounts will be applied. Exemptions are made for raw materials, pollution control equipment, quality control testing, and donations to charitable entities, as well as for utility gross receipts tax.

Property Tax

This incentive includes abatements for noneducational property taxes, exemptions for pollution control equipment and raw material inventory. No property taxes are paid on inventory (some restrictions apply). Alexander City (Tallapoosa County) is classified as a Class 6 municipality, so special property tax incentives are available for businesses located here.

Current Use Exemption

For owners of farmland, pastureland or timberland that is producing agricultural products, livestock or wood products for sale to the general public. This exemption allows for property to be accessed at less than market value when used only for the purposes specified. Once the owner applies, reapplication does not have to take place for subsequent years. If the property changes hands, the new owner must file an application for current use.

Enterprise Zone Tax Program

Portions of both Tallapoosa and Coosa counties within the Lake Martin area are designated as Enterprise Zones. Incentives are available to new and expanding industries that are located in these areas, for up to $2,500 in tax credits for each new permanent employee, and for exemptions for income, sales and use, and business privilege tax liability.

Favored Geographic Areas Program

This program allows qualifying new and expanding industries to be eligible for Capital Investment Tax Credit at lower investment and job creation thresholds. All of Coosa County is designated and the enterprise zones in Tallapoosa County are designed as Favored Geographic Areas. You can learn more about this program here.

Income Tax Capital Credit

This credit is available to new and expanding industries for up tp 5% for the total capital costs of qualifying projects. This tax is available every year, for 20 years. Additionally, the threshold is lower for locations in parts of Coosa and Tallapoosa counties as they are a part of the Favored Geographic Areas program.

 

Workforce Grant Opportunities

Incumbent Worker Training Grant (IWTP)

The objective of this grant program is to provide training and skills upgrades to existing full-time, permanent employees, who have been with the company for a minimum of 6 months. Funding priority is given to industry sector businesses that are experiencing significant training shortages where training or retaining workers is necessary to respond to skilled labor shortages and demands. The maximum amount per project is $30,000, or a $60,000 lifetime maximum benefit.

Existing Industry Training Program (EITP)

The objective of this program is to train and upgrade skills of existing full-time employees. The college or ATN, the Alabama Community College System, and the Workforce Development Division of Commerce must review, rank, score, and submit recommendations on every company that applies. The maximum funding per company per project is $15,000 (alliances of multiple companies can qualify for more per training project), or a $60,000 10-year maximum benefit.

Work Opportunity Tax Credit (WOTC)

The WOTC is a federal tax credit, available to companies that hire individuals from eligible target groups with significant barriers to employment. Individual employees can apply through the Alabama Department of Labor WOTC for a tax credit between $2,400- $9,600, depending on the target group and the number of hours worked in the first year of employment. These target groups include veterans, TANF recipients, food stamp recipients, designated community residents, vocational rehabilitation referrals, ex-felons, supplemental security income recipients, and long-term unemployment recipients

On the Job Training (OJT)

The purpose of this program is to provide employers with reimbursements for the costs associated with hiring and training WIOA eligible individuals. Employers, once they determine the length and method of training for employees, will enter into a Training Contract with the Local Career Center. Employers may receive 50-75% of trainee wages reimbursement through monthly invoices, and upon completion of employee training.

 

lake martin map

CONTACT US


P.O. Box 1105 (35011)
1675 Cherokee Road
Alexander City, AL 35010

p: 256-215-4404
f: 256-215-4452
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