Alabama Metro
Areas: Driving the
State in 2005
Led by Alabama’s growing automotive
industry, the economic rebound that began
in 2004 gained strength in 2005. Every one
of the state’s 11 metropolitan areas added
jobs during the year. Between January and
December 2005, the metro areas generated a
total of 38,680 new jobs. As the economy
improved over the course of the year, more
residents of each metro area were able to find
work. With employment rising more than
twice as fast as the civilian labor force, on
average, the unemployment rate fell markedly
in each area during 2005. On a percentage
basis, Dothan saw the strongest job growth
with an increase of 4.6 percent, followed by
the automotive manufacturing centers of
Montgomery and Tuscaloosa with gains of
4.2 and 4.0 percent, respectively.
will begin to attract more
new residents to the
state. As the metro areas
continue to add jobs that
pay good wages, incomes
of the average family will
show marked improvement. Workforce
development holds the
key, however, to maintaining this momentum
by providing enough
workers with the skills
needed in new and
expanding industries
across the metro areas
and the state as a whole.
Metro Area
Developments
in 2005
Metropolitan Area Nonagricultural Employment
Alabama
Anniston-Oxford
Auburn-Opelika
Birmingham-Hoover
Decatur
Dothan
Florence-Muscle Shoals
Gadsden
Huntsville
Mobile
Montgomery
Tuscaloosa
Russell County
Net Jobs in Metropolitan Areas
38,680
Anniston-Oxford. Role
in national defense and
homeland security
expanding; Anniston Army
Depot survived BRAC cuts;
growing workload for the
Depot and related defense
contractors; employment
gains from expansion at
nearby Honda; development
of McClellan progressing;
successful recruiting of
laminate wood flooring
manufacturer Kronospan
GmbH plant that will create
up to 700 jobs; ongoing
retail growth to include
new Oxford Exchange
outdoor mall in 2006.
Relations.
Alabama Business
Change from
January 2005
Number Percent
40,600
2.1
500
1.0
700
1.4
8,000
1.5
1,800
3.1
2,900
4.6
1,700
3.1
1,200
3.1
6,100
3.1
4,900
2.7
7,300
4.2
3,800
4.0
-220
-1.7
* Preliminary
Note: Russell County is part of the Columbus, GA-AL MSA.
Source: Alabama Department of Industrial Relations.
Services was the primary engine of job
growth, accounting for 15,700 new jobs in
the 11 metropolitan areas from January to
December 2005. Professional and business
as well as healthcare services were large
components of these gains, while leisure and
hospitality added jobs in almost every metro
area. Manufacturing was a key sector,
contributing a total of 6,700 jobs across
metropolitan Alabama during 2005. All
areas except Anniston-Oxford and Decatur
posted manufacturing job gains during the
year. While motor vehicles and parts
manufacturing accounted for the largest
share of these new jobs, aerospace, ships,
steel, and computer and electronic products
were also important. Trade, including
wholesale distribution, retail centers, and
neighborhood retail, was responsible for
Metropolitan Area
job gains across the metro areas. And
Unemployment Rate
involvement of many of Alabama’s
December*
January
metros in activities supporting national
2005
2005
defense and homeland security brought
Alabama
3.2
5.5
jobs to governmental entities and to
Anniston-Oxford
3.3
5.5
private contractors supporting their
Auburn-Opelika
2.5
4.5
work.
Birmingham-Hoover
3.0
5.0
Decatur
3.3
5.9
The momentum of 2005 is carrying over
Dothan
2.6
4.9
into 2006. Jobs at automotive plants
Florence-Muscle Shoals
3.7
6.4
and their suppliers continue to grow, and
Gadsden
3.5
6.1
shipbuilding and aerospace are among
Huntsville
2.6
4.4
other sectors that are adding to their
Mobile
3.5
6.0
workforces in 2006. Implementation of
Montgomery
3.2
5.5
decisions by the Base Realignment and
Tuscaloosa
2.7
4.9
Closure Commission (BRAC) may begin
* Preliminary
to shift jobs to Alabama this year. Low
Source: Alabama Department of Industrial
unemployment and ongoing job growth
10
December*
2005
1,944,900
51,100
50,800
516,700
57,400
63,300
54,900
38,400
198,900
178,500
175,100
95,400
12,970
Metropolitan Area Job Creation
by Sector
January to December 2005
Manufacturing
Services
Alabama
Anniston-Oxford
Auburn-Opelika
Birmingham-Hoover
Decatur
Dothan
Florence-Muscle Shoals
Gadsden
Huntsville
Mobile
Montgomery
Tuscaloosa
5,000
-400
100
800
-400
100
400
500
900
300
2,600
1,800
17,500
100
900
3,400
1,100
1,000
600
-200
2,500
2,800
2,700
800
Source: Alabama Department of Industrial
Relations.
What’s on the horizon?
• More transportation equipment
jobs, in automotive manufacturing
and also in shipbuilding and
aerospace.
• Significant growth in North
Alabama as a result of BRAC.
• A continuing increase in jobs
related to national defense.
• Growth in healthcare services
jobs and facilities.
• High tech job gains in medical,
biotechnology, science, and
engineering research areas.
• Increased importance of Alabama’s
targeted career/technical training
programs to supply workforce
needs.
• Population growth as jobs attract
people to the state.
Auburn-Opelika. Strong job gains in
professional and business services and in
state and local government; new and
expanding auto suppliers; other new
manufacturing, including Gambro Renal
Products; Jo-Ann Stores distribution center
opened; retail development at TigerTown and
Colonial University Village mall; strong
population and housing growth; further
growth on the horizon from expansion at
nearby Fort Benning as a result of BRAC.
Birmingham-Hoover. Job gains led by
services, trade, and manufacturing; losses
in banking resulting from SouthTrust sale
to Wachovia; new and expanding auto suppliers; employment growth from expansions
at neighboring Mercedes and Honda;
warehouse development; professional and
business services boosted by new State Farm
operations center; UAB’s new biomedical
research building to bring scientific and
medical research jobs in 2006; downtown
Birmingham redevelopment with Park Place
Hope VI project, loft apartments, and
condos; new Social Security Administration
building and hospital projects underway;
Retirement Systems of Alabama (RSA)’s
Renaissance Ross Bridge Resort and Spa
opened in Hoover; strong suburban
population, housing, and retail growth.
Decatur. Economy diversifying with strong
job growth in professional and business
services, medical services, and in leisure and
hospitality services jobs; gains in manufacturing almost offset losses; steel and some
chemical products plants expanding; future
of rocket production promising; Colonial Mall
renovations underway in 2006; sport fishing
marina under development; expansion of
targeted industry training programs as well
as ongoing construction projects at Calhoun
Community College; funding for I-565
extension corridor study.
Dothan. Gains in retail trade strengthen city
of Dothan’s role as regional shopping hub;
new Dothan Pavilion shopping center on the
horizon; job growth in educational and
health services; expanding warehousing and
distribution sector, including Geneva
County’s new SYSCO facility; expansions at
area manufacturers, including Dothan’s
Pemco Aerospace and Henry County’s
Westpoint Stevens; enhanced cooperation
across the metro to promote retail, industrial,
and commercial development in all area
communities.
Florence-Muscle Shoals. Developments
on many fronts helped the area rebound in
2005; RSA’s Shoals Marriott Hotel, a second
Robert Trent Jones golf course, and an
associated spa and revolving restaurant
brought hospitality jobs and convention and
recreational visitors; services was boosted by
growing call center employment; new and
expanding manufacturing companies more
than offset the loss of the area’s last textile
and apparel jobs; vehicle tail lamp manufacturer North American Lighting selected the
Shoals for a new plant that will bring over
300 jobs.
Gadsden. Job growth from new and
expanding manufacturers, including auto
suppliers; employment growth also from
commuting to nearby Honda; new Rigid
Building Systems plant will employ 200 in
2006; growing retail with opening of Coosa
Town Center and new Wal-Mart Supercenter;
retail and commercial development beginning
to follow housing growth in outlying areas;
large retail and housing developments
planned for Gadsden.
Huntsville. National defense demands
driving growth at area defense contractors;
manufacturing job growth headed by
expansion of Toyota’s engine plant; strong
gains in scientific and technical jobs, with
building and expansion at a number of
companies; groundwork laid for HudsonAlpha Institute for Biotechnology; progress in
providing amenities to attract and retain high
tech workforce with groundbreaking for
World Famous Bridge Street project; strong
residential growth; downtown development
progressing; defense-related population and
job explosion to begin in 2006 as BRAC
move of three units to Redstone Arsenal gets
underway.
Mobile. Strong job gains in shipbuilding and
repair; growing aerospace industry with
Mobile chosen by EADS North America for
engineering center and possible plant; new
and expanding manufacturing industries,
including steel production; Alabama State
Docks expansion on track; sizeable job gains
in professional and business services;
downtown building to bring new office and
hotel space in 2006; tourism and seafood
industries recovering from Hurricane Katrina;
hurricanes brought influx of evacuees,
boosting Mobile economy by hotel occupancy, retail sales, home sales, and rentals;
building underway on the University of
South Alabama’s Cancer Research Institute.
Montgomery. Hyundai Sonata production
began in May, more than doubling plant
employment between January and September; strong job growth at Hyundai suppliers;
gains to continue in 2006 as Santa Fe
production added; plastics and aerospace
manufacturing also growing; professional and
business services saw strong job gains;
Maxwell-Gunter Air Force Base retained its
high tech jobs under final BRAC; residential
and retail development accelerating in
Prattville, where large-scale shopping center
under construction; RSA-led renovation of
Montgomery Civic Center and construction
of performing arts center and adjoining hotel
adding to downtown development.
Tuscaloosa. Job growth driven by doubling
of employment at Mercedes to 4,000 as
second plant came online, full-scale
production of the next generation M-Class
underway at the start of 2005 and R-Class
production added at mid-year; expansions
at Mercedes suppliers and other area manufacturers; job gains in mining and construction; rising enrollment at The University of
Alabama triggering construction of dormitories on campus and private investment in
off-campus student condos; downtown
development to progress in 2006 on new
federal building, urban renewal, and housing.
A report on 2005 developments in each of
Alabama’s 11 metro areas is included in the
Alabama Economic Outlook 2006 publication.
Carolyn Trent
[email protected]
Alabama Business
11