Alabama Economic Overview
INTRODUCTION Expanding City of Birmingham Located on the Gulf of Mexico at the center of the fastest-growing region in the United States, Alabama is considered a gateway to the expanding markets in Mexico and Latin America. The state is a participant in the States of the Gulf of Mexico Initiative, a regional effort promoting economic, educational, and cultural exchanges between Mexican and U.S. states. Alabama’s government encourages the growth of its robust economy—particularly its manufacturing, filming, and aerospace industries—by sales and use tax laws that provide a decided advantage over other states. These regulations allow exemptions for various manufacturers and commodities, including gas, lubricating oil, fertilizer, feed for livestock, wholesale transactions, and sales to governmental entities. ECONOMIC HISTORY Cotton Fields In the 1820s and 1830s, settlers were drawn to Alabama’s rich and productive soil. Cotton plantations sprung up, and almost half of Alabama’s population was made up of slaves who worked on them. During the period between the Civil War and World War II, Alabama’s economy suffered, partly due to drought and a massive infestation of the cotton fields by the boll weevil. As a result, 15 percent of the white population moved to Texas and other states, and 45 percent of the black population moved north in what was known as the Great Migration. During World War II, the economy shifted to industry and mining, and began to prosper. Some large contributors to the current economy are the automobile manufacturing industry and the construction industry. AGRICULTURE Alabama has a diversified agricultural economy, with 48,753 farms. This state ranks third in the U.S. in the raising of broiler chickens, and the chicken and egg industry together accounts for $3 billion. Cattle and milk bring in $4.5 million; vegetables, $33.9 million; peanuts, corn, and soybeans, $120 million; and peaches and other fruits, $27.6 million. In addition, the horse industry (including ponies, mules, burros, and donkeys) brings in an additional $14.4 million, and sheep, goats, and their products account for $3.1 million. Although Alabama is called the Cotton State, it ranks low on the list of top U.S. growers of cotton. Nevertheless, it does produce an annual crop worth more than $104 million. The largest manufacturing industry in the state is forest products, and Alabama ranks second in the U.S. in terms of largest timberland base. Lumber for railroad crossties, hardwood flooring, furniture, kitchen cabinets, doors, coffins, paper, and pulp products are part of the over $15 billion forest industry. Again, Alabama offers tax incentives for qualifying companies that are involved in cotton ginning or logging. BANKING AND FINANCIAL SERVICES AmSouth Bank Building Birmingham boasts a large banking center, with many banks having their headquarters there, such as AmSouth Bancorporation (the eighth largest U.S. bank), BBVA Compass Bank, and the regional headquarters of Wachovia. These and numerous smaller banks, such as New South Federal Savings Bank and Superior Bank, give Birmingham its nickname of the Magic City, due to its impressive growth. A dozen other banks have state-of-the-art branches throughout Alabama that provide the latest standards of service. There are approximately 3,200 banking establishments, whose more than 44,000 employees earn a combined annual payroll of more than $1.6 billion. The securities and related activities sector has 525 establishments with more than 3,600 employees and a $304 million payroll. Their combined revenues amount to more than $856 million. COMMUNICATIONS The first 911 call in the United States was made in Halleyville, Alabama, in February 1968. Currently, AT&T runs a number of large offices in Alabama’s most populous city, Birmingham, which are the first point of contact for the states many high-speed Internet subscribers. There are 118 Alabama newspapers, some of which have online versions, in addition to numerous radio and television stations and magazines. The newspaper industry employs some 4,300 workers at a total annual salary of $129 million, with industry revenues totaling more than $417 million. The telecommunications industry has 796 establishments with a total of 18,247 workers earning a combined annual payroll of more than $730 million. The broadcasting industry has 210 establishments featuring more than 3,500 employees earning a total salary of $116 million and with industry revenues of some $380 million. CONSTRUCTION Many construction and engineering companies provide jobs for Alabama’s residents; among these are the BE&K and B.L. Harbert International. Shelby County, Alabama, holds the record for the fastest building of a home by professionals—a remarkable time of less than three and a half hours. The construction industry in Alabama employed some 92,000 workers in 2009, a drop of 21,700 (19 percent) from its peak in 2007, due to the worldwide recession. Annual construction in the state is worth more than $19 billion, which includes new residential buildings; remodeling; highway, street, and bridge construction; and commercial, institutional, and government buildings. EDUCATION Tuskegee University Alabama has 481 schools with 3,591 employees earning an annual payroll of more than $73.8 million. The leading research universities in Alabama include Auburn University (more than 24,100 students), Alabama A&M University (more than 5,000 students), Tuskeqee University (more than 3,000 students), University of Alabama (more than 28,800 students), and University of South Alabama (more than 14,700 students). There are 61 business/computer schools with 481 paid employees with a total annual salary of $14 million and revenues of $34 million. The technical and trade schools have 81 establishments, 979 employees with a total annual salary of $35 million, and revenues of more than $75 million. The state has 296 other schools (fine arts, sports, etc.), whose 1,879 employees earn a total annual payroll of some $19 million and which have revenues of more than $61 million. ENERGY Alabama encourages the use of alternative energy resources and hydropower production by offering tax abatements and exemptions to companies that obtain their electricity from these energy sources. There are over 2,300 energy and resources companies in Alabama, including around 300 electric companies, such as Alabama Electric Cooperative, Alabama Power, and Dixie Electric Cooperative. Alabama’s rate for industrial electricity is one of the lowest in the country, only 4.15 cents per kilowatt-hour. There are 34 electricity-generating plants in Alabama, half of them driven by hydroelectric power and half by fossil fuels. In addition, there are 47 natural gas distribution establishments, which employ more than 1,700 workers at an annual payroll of more than $85.8 million. ENTERTAINMENT Beautiful Gulf Shores Alabama is working on becoming a filming location center, marketing itself the most biologically diverse place in America outside of California that possesses many beautiful scenic areas. An incentives bill was voted into law to encourage qualified production companies to film in Alabama, and at least 100 production companies already operate in the state with 2,145 employees earning a combined annual income of $3.2 million. There is a wide variety of dance troupes, ballets, studios, and companies (such as the Alabama Ballet, the Stevan Grebel Youth Ballet, and Broadway South Dance Company) spread throughout Alabama, as well as 39 theaters (including the Birmingham Park Players, Theatre 98, and Zodiac Theatre). The state encourages these and other cultural events with matching grants programs. INSURANCE The insurance premium tax of the Code of Alabama 1975 serves as the fifth largest source of revenue for the state, which goes to fund activities such as the upkeep of state lands and parks. There are more than 1,600 insurance companies in Alabama, with more than 8,900 employees earning over $444 million in annual payroll. Their $11.5 billion revenue includes $904 million from insurance agencies and brokerages and $254 million from other insurance-related activities, such as claims adjusting and pension funds. Some 75 percent of the approximately $16 billion worth of policies they write cover property and casualty insurance. MANUFACTURING Automobile Engine Ranking fourth in the nation in automobile manufacturing, with millions of square feet of vehicle assembly plants owned by Mercedes-Benz, Honda, and Hyundai, Alabama's auto industry provides jobs for more than 29,000 workers. More than 350 automotive-related manufacturers have helped Alabama maintain its leading position in the southeast. In addition, the state manufactures iron and steel products, such as cast-iron and steel pipe. The chemical and plastic industries export billions of dollars annually. Ciba, Azko Nobel, and Syngenta are among the top employers in the chemical manufacturing industry in Alabama. Tax incentives are offered to existing industries, new industries, and expanding industries if they are able to provide at least 50 new jobs. Altogether, there are more than 284,000 employees in Alabama’s manufacturing industries with a total annual payroll of more than $9.7 billion. The value of manufactured goods shipped is more that $66.6 billion annually. MINING AND EXTRACTION Steel Mill Alabama is the only known place in the world where the three components of steel making—coal, iron ore, and limestone—are all found within a 30-mile radius. At 120,000 pounds (54,431 kg) and 56 feet (17 m) tall, the largest cast-iron statue in the world, "the Vulcan," is located in Birmingham. Alabama’s bituminous coal underground mining companies, bituminous coal and lignite surface mining companies, chemical and fertilizer mineral mining companies, metal mining services, and limestone quarrying companies together mine and process around a billion dollars worth of mineral commodities a year. More than four million metric tons of portland cement, with a value of $344 million, 5.5 million metric tons of crushed stone, valued at $318 million, and 58.1 million metric tons of construction sand and gravel, worth $58.1 million, contribute to the above annual amount. Alabama marble is considered the whitest in the world and was used for the Lincoln Memorial in Washington, D.C. NONPROFIT Alabama boasts a total of 19,290 nonprofit organizations, most being public but some private. The majority of these (over 83 percent) report receiving less than $100,000 per year (only 18 reported annual revenue of over $100 million). But altogether, nonprofit organizations have total revenues of over $11.6 billion and $25.4 billion worth of assets. More than $192.7 million is generated by Alabama’s nonprofit organizations in local and state taxes each year. The nonprofit organizations employ over 71,000 workers, more than those who work for the real estate, mining, and utilities companies combined. Their payroll is around $2.4 billion annually. RETAIL Retail stores, joined under the Alabama Retail Association, had customers spending $8.4 billion in the two months at the end of 2009, despite a drop in sales due to the worldwide economic crisis. Annual sales are approximately $43.7 billion, with more than 222,000 employees earning a total annual payroll of more than $4 billion. There are 19,608 retail stores in Alabama. Motor vehicle and parts dealers generate almost a quarter of this revenue, at $11 billion, and employ 29,427 workers. General merchandise stores rank second, with total sales of more than $7.6 billion, followed by food and beverage stores, with revenues of more than $6 billion. Retail Day was created by the University of Alabama at Birmingham’s School of Business Marketing and is held in late September. TECHNOLOGY Shooting Star Experiment at NASA's Marshall Space Flight Center Alabama is justifiably proud of its seven research universities and 90 biotech companies. At least six cancer drugs approved by the FDA have been produced in Alabama, and intense research is continuing regarding the flu and the NIH Roadmap. The city of Huntsville, known as Rocket City, is the home of Redstone Arsenal, which includes the National Aeronautics and Space Administration’s Marshall Space Flight Center, the U.S. Army Aviation and Missile Command, and the U.S. Army Space and Missile Defense Command. More than 330 aerospace companies in Alabama concentrate on aviation, space, and defense, and billions of dollars worth of contracts with the Department of Defense are awarded annually to Alabama’s aerospace industry. These companies employ more than 73,000 Alabamans, with a yearly payroll of more than $3 billion. TRANSPORTATION Port City of Mobile Five interstate highways traverse Alabama and contribute to the state’s system of 74,000 miles of roads. Businesses that are interested in one-day shipping find that Birmingham functions as the hub for most of the Deep South. In addition, 25 freight railroads operate in Alabama, and the waterway system is one of the largest in the nation. The deep port of Mobile, Alabama’s oldest city, connects the state to international shipping, and there are numerous inland dock facilities as well. There are more than 300 daily flights to and from Alabama’s seven airports. TRAVEL AND TOURISM Alabama provides qualifying tourist sites, events, and attractions with matching grants to help with advertising costs for brochures, Web sites, and more, with an eye toward generating jobs and more business for restaurants and hotels. Alabama Museum of Natural History The approximately 18 million tourists who come to Alabama each year spend around $6.1 billion at the various resorts, spas, and hotels, as well as at Helen Keller’s birthplace, the Alabama Museum of Natural History, the Mobile Museum of Art, the Pope’s Tavern Museum (formerly an inn, used as a hospital during the Civil War), and 114 other museums. The Robert Trent Jones Golf Trail is the largest public golf course in the world, and hosts various tournaments. The largest space museum in the world is located in Alabama, as is the most extensive motorcycle collection in North America, the Barber Vintage Motorcycle Museum. SPECIAL INDUSTRIES The outdoors industry is particularly strong in Alabama. Residents and tourists are able to enjoy year-round fishing in lakes and waterways that cover hundreds of thousands of acres, and a long hunting season for deer, quail, turkey, duck, geese, and other game. One in every five Alabamans fishes or hunts, and sportsmen pay $105.2 million in state sales tax, fuel tax, and income tax. Their hunting and fishing license fees and excise taxes pay for the upkeep of the fish and wildlife resources. -World Trade Press

Alabama Economic Overview

INTRODUCTION

Expanding City of Birmingham

Located on the Gulf of Mexico at the center of the fastest-growing region in the United States, Alabama is considered a gateway to the expanding markets in Mexico and Latin America. The state is a participant in the States of the Gulf of Mexico Initiative, a regional effort promoting economic, educational, and cultural exchanges between Mexican and U.S. states. Alabama’s government encourages the growth of its robust economy—particularly its manufacturing, filming, and aerospace industries—by sales and use tax laws that provide a decided advantage over other states. These regulations allow exemptions for various manufacturers and commodities, including gas, lubricating oil, fertilizer, feed for livestock, wholesale transactions, and sales to governmental entities.

ECONOMIC HISTORY

Cotton Fields

In the 1820s and 1830s, settlers were drawn to Alabama’s rich and productive soil. Cotton plantations sprung up, and almost half of Alabama’s population was made up of slaves who worked on them. During the period between the Civil War and World War II, Alabama’s economy suffered, partly due to drought and a massive infestation of the cotton fields by the boll weevil. As a result, 15 percent of the white population moved to Texas and other states, and 45 percent of the black population moved north in what was known as the Great Migration. During World War II, the economy shifted to industry and mining, and began to prosper. Some large contributors to the current economy are the automobile manufacturing industry and the construction industry.

AGRICULTURE

Alabama has a diversified agricultural economy, with 48,753 farms. This state ranks third in the U.S. in the raising of broiler chickens, and the chicken and egg industry together accounts for $3 billion. Cattle and milk bring in $4.5 million; vegetables, $33.9 million; peanuts, corn, and soybeans, $120 million; and peaches and other fruits, $27.6 million. In addition, the horse industry (including ponies, mules, burros, and donkeys) brings in an additional $14.4 million, and sheep, goats, and their products account for $3.1 million. Although Alabama is called the Cotton State, it ranks low on the list of top U.S. growers of cotton. Nevertheless, it does produce an annual crop worth more than $104 million.

The largest manufacturing industry in the state is forest products, and Alabama ranks second in the U.S. in terms of largest timberland base. Lumber for railroad crossties, hardwood flooring, furniture, kitchen cabinets, doors, coffins, paper, and pulp products are part of the over $15 billion forest industry. Again, Alabama offers tax incentives for qualifying companies that are involved in cotton ginning or logging.

BANKING AND FINANCIAL SERVICES

AmSouth Bank Building

Birmingham boasts a large banking center, with many banks having their headquarters there, such as AmSouth Bancorporation (the eighth largest U.S. bank), BBVA Compass Bank, and the regional headquarters of Wachovia.

These and numerous smaller banks, such as New South Federal Savings Bank and Superior Bank, give Birmingham its nickname of the Magic City, due to its impressive growth. A dozen other banks have state-of-the-art branches throughout Alabama that provide the latest standards of service. There are approximately 3,200 banking establishments, whose more than 44,000 employees earn a combined annual payroll of more than $1.6 billion. The securities and related activities sector has 525 establishments with more than 3,600 employees and a $304 million payroll. Their combined revenues amount to more than $856 million.

COMMUNICATIONS

The first 911 call in the United States was made in Halleyville, Alabama, in February 1968. Currently, AT&T runs a number of large offices in Alabama’s most populous city, Birmingham, which are the first point of contact for the states many high-speed Internet subscribers. There are 118 Alabama newspapers, some of which have online versions, in addition to numerous radio and television stations and magazines. The newspaper industry employs some 4,300 workers at a total annual salary of $129 million, with industry revenues totaling more than $417 million. The telecommunications industry has 796 establishments with a total of 18,247 workers earning a combined annual payroll of more than $730 million. The broadcasting industry has 210 establishments featuring more than 3,500 employees earning a total salary of $116 million and with industry revenues of some $380 million.

CONSTRUCTION

Many construction and engineering companies provide jobs for Alabama’s residents; among these are the BE&K and B.L. Harbert International. Shelby County, Alabama, holds the record for the fastest building of a home by professionals—a remarkable time of less than three and a half hours. The construction industry in Alabama employed some 92,000 workers in 2009, a drop of 21,700 (19 percent) from its peak in 2007, due to the worldwide recession. Annual construction in the state is worth more than $19 billion, which includes new residential buildings; remodeling; highway, street, and bridge construction; and commercial, institutional, and government buildings.

EDUCATION

Tuskegee University

Alabama has 481 schools with 3,591 employees earning an annual payroll of more than $73.8 million. The leading research universities in Alabama include Auburn University (more than 24,100 students), Alabama A&M University (more than 5,000 students), Tuskeqee University (more than 3,000 students), University of Alabama (more than 28,800 students), and University of South Alabama (more than 14,700 students). There are 61 business/computer schools with 481 paid employees with a total annual salary of $14 million and revenues of $34 million. The technical and trade schools have 81 establishments, 979 employees with a total annual salary of $35 million, and revenues of more than $75 million. The state has 296 other schools (fine arts, sports, etc.), whose 1,879 employees earn a total annual payroll of some $19 million and which have revenues of more than $61 million.

ENERGY

Alabama encourages the use of alternative energy resources and hydropower production by offering tax abatements and exemptions to companies that obtain their electricity from these energy sources. There are over 2,300 energy and resources companies in Alabama, including around 300 electric companies, such as Alabama Electric Cooperative, Alabama Power, and Dixie Electric Cooperative. Alabama’s rate for industrial electricity is one of the lowest in the country, only 4.15 cents per kilowatt-hour. There are 34 electricity-generating plants in Alabama, half of them driven by hydroelectric power and half by fossil fuels. In addition, there are 47 natural gas distribution establishments, which employ more than 1,700 workers at an annual payroll of more than $85.8 million.

ENTERTAINMENT

Beautiful Gulf Shores

Alabama is working on becoming a filming location center, marketing itself the most biologically diverse place in America outside of California that possesses many beautiful scenic areas. An incentives bill was voted into law to encourage qualified production companies to film in Alabama, and at least 100 production companies already operate in the state with 2,145 employees earning a combined annual income of $3.2 million. There is a wide variety of dance troupes, ballets, studios, and companies (such as the Alabama Ballet, the Stevan Grebel Youth Ballet, and Broadway South Dance Company) spread throughout Alabama, as well as 39 theaters (including the Birmingham Park Players, Theatre 98, and Zodiac Theatre). The state encourages these and other cultural events with matching grants programs.

INSURANCE

The insurance premium tax of the Code of Alabama 1975 serves as the fifth largest source of revenue for the state, which goes to fund activities such as the upkeep of state lands and parks. There are more than 1,600 insurance companies in Alabama, with more than 8,900 employees earning over $444 million in annual payroll. Their $11.5 billion revenue includes $904 million from insurance agencies and brokerages and $254 million from other insurance-related activities, such as claims adjusting and pension funds. Some 75 percent of the approximately $16 billion worth of policies they write cover property and casualty insurance.

MANUFACTURING

Automobile Engine

Ranking fourth in the nation in automobile manufacturing, with millions of square feet of vehicle assembly plants owned by Mercedes-Benz, Honda, and Hyundai, Alabama's auto industry provides jobs for more than 29,000 workers. More than 350 automotive-related manufacturers have helped Alabama maintain its leading position in the southeast. In addition, the state manufactures iron and steel products, such as cast-iron and steel pipe. The chemical and plastic industries export billions of dollars annually. Ciba, Azko Nobel, and Syngenta are among the top employers in the chemical manufacturing industry in Alabama. Tax incentives are offered to existing industries, new industries, and expanding industries if they are able to provide at least 50 new jobs. Altogether, there are more than 284,000 employees in Alabama’s manufacturing industries with a total annual payroll of more than $9.7 billion. The value of manufactured goods shipped is more that $66.6 billion annually.

MINING AND EXTRACTION

Steel Mill

Alabama is the only known place in the world where the three components of steel making—coal, iron ore, and limestone—are all found within a 30-mile radius. At 120,000 pounds (54,431 kg) and 56 feet (17 m) tall, the largest cast-iron statue in the world, "the Vulcan," is located in Birmingham. Alabama’s bituminous coal underground mining companies, bituminous coal and lignite surface mining companies, chemical and fertilizer mineral mining companies, metal mining services, and limestone quarrying companies together mine and process around a billion dollars worth of mineral commodities a year. More than four million metric tons of portland cement, with a value of $344 million, 5.5 million metric tons of crushed stone, valued at $318 million, and 58.1 million metric tons of construction sand and gravel, worth $58.1 million, contribute to the above annual amount. Alabama marble is considered the whitest in the world and was used for the Lincoln Memorial in Washington, D.C.

NONPROFIT

Alabama boasts a total of 19,290 nonprofit organizations, most being public but some private. The majority of these (over 83 percent) report receiving less than $100,000 per year (only 18 reported annual revenue of over $100 million). But altogether, nonprofit organizations have total revenues of over $11.6 billion and $25.4 billion worth of assets. More than $192.7 million is generated by Alabama’s nonprofit organizations in local and state taxes each year. The nonprofit organizations employ over 71,000 workers, more than those who work for the real estate, mining, and utilities companies combined. Their payroll is around $2.4 billion annually.

RETAIL

Retail stores, joined under the Alabama Retail Association, had customers spending $8.4 billion in the two months at the end of 2009, despite a drop in sales due to the worldwide economic crisis. Annual sales are approximately $43.7 billion, with more than 222,000 employees earning a total annual payroll of more than $4 billion. There are 19,608 retail stores in Alabama. Motor vehicle and parts dealers generate almost a quarter of this revenue, at $11 billion, and employ 29,427 workers. General merchandise stores rank second, with total sales of more than $7.6 billion, followed by food and beverage stores, with revenues of more than $6 billion. Retail Day was created by the University of Alabama at Birmingham’s School of Business Marketing and is held in late September.

TECHNOLOGY

Shooting Star Experiment at NASA's Marshall Space Flight Center

Alabama is justifiably proud of its seven research universities and 90 biotech companies. At least six cancer drugs approved by the FDA have been produced in Alabama, and intense research is continuing regarding the flu and the NIH Roadmap. The city of Huntsville, known as Rocket City, is the home of Redstone Arsenal, which includes the National Aeronautics and Space Administration’s Marshall Space Flight Center, the U.S. Army Aviation and Missile Command, and the U.S. Army Space and Missile Defense Command. More than 330 aerospace companies in Alabama concentrate on aviation, space, and defense, and billions of dollars worth of contracts with the Department of Defense are awarded annually to Alabama’s aerospace industry. These companies employ more than 73,000 Alabamans, with a yearly payroll of more than $3 billion.

TRANSPORTATION

Port City of Mobile

Five interstate highways traverse Alabama and contribute to the state’s system of 74,000 miles of roads. Businesses that are interested in one-day shipping find that Birmingham functions as the hub for most of the Deep South. In addition, 25 freight railroads operate in Alabama, and the waterway system is one of the largest in the nation. The deep port of Mobile, Alabama’s oldest city, connects the state to international shipping, and there are numerous inland dock facilities as well. There are more than 300 daily flights to and from Alabama’s seven airports.

TRAVEL AND TOURISM

Alabama provides qualifying tourist sites, events, and attractions with matching grants to help with advertising costs for brochures, Web sites, and more, with an eye toward generating jobs and more business for restaurants and hotels.

Alabama Museum of Natural History

The approximately 18 million tourists who come to Alabama each year spend around $6.1 billion at the various resorts, spas, and hotels, as well as at Helen Keller’s birthplace, the Alabama Museum of Natural History, the Mobile Museum of Art, the Pope’s Tavern Museum (formerly an inn, used as a hospital during the Civil War), and 114 other museums. The Robert Trent Jones Golf Trail is the largest public golf course in the world, and hosts various tournaments. The largest space museum in the world is located in Alabama, as is the most extensive motorcycle collection in North America, the Barber Vintage Motorcycle Museum.

SPECIAL INDUSTRIES

The outdoors industry is particularly strong in Alabama. Residents and tourists are able to enjoy year-round fishing in lakes and waterways that cover hundreds of thousands of acres, and a long hunting season for deer, quail, turkey, duck, geese, and other game. One in every five Alabamans fishes or hunts, and sportsmen pay $105.2 million in state sales tax, fuel tax, and income tax. Their hunting and fishing license fees and excise taxes pay for the upkeep of the fish and wildlife resources.

-World Trade Press

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12 Ocak 2013 Cumartesi