Alabama Metropolitan Areas The recovery began to strengthen across Alabama’s 2,015 11 metropolitan areas during 2012. While only 400 1,960 metro jobs were added 1,905 between October 2011 and October 2012, employment 1,850 2002 2007 2012 in most areas was increasing Source: U.S. Bureau of Labor Statistics. or flat during the 12 months. Declines in Auburn‐Opelika and Tuscaloosa’s sizeable state and local government sectors accounted for most of the job losses. However, the state’s metro areas still need to add around 97,700 jobs to boost employment back to the October 2007 prerecession level of 1,535,100. New and expanding industry announcements picked up in most areas during 2012, with manufacturing projects concentrated in the automotive, aerospace, shipbuilding, and primary and fabricated metals industries. Diversifica‐ tion was a focus and metros added jobs in fields including information technology, biotechnology, healthcare, pro‐ fessional and scientific services, and warehousing and logistics. Retail development activity increased as household income improved. Alabama’s metro areas provide an ample workforce for new and expanding businesses. Using underemployment estimates from a 2011 survey by the Center for Business and Economic Research and October 2012 employment data, the available labor pool of unemployed and underemployed metro residents was around 474,000. Partnerships between the business community and secondary and higher educa‐ tion institutions are key to ensuring that this potential workforce has the skills area employers need. Alabama Nonfarm Employment (Thousands) Anniston‐Oxford Although the Anniston‐ Oxford economy had challenges arise in 2012, the overall picture for the 51 calendar year was a positive one. Total nonfarm employ‐ 48 ment in the area was 48,700 45 in October 2012, a 1.9 2002 2007 2012 percent increase from Source: U.S. Bureau of Labor Statistics. October 2011. The trade, transportation, warehousing, and utilities sector, along with the government sector each added 300 jobs. Three other sectors had job gains of 100 each. The local labor force expanded in 2012, up 1.3 percent to 54,085, and total Nonfarm Employment (Thousands) 54 employment of local residents increased 1.8 percent to 49,670. This increase in employment caused the unemploy‐ ment rate to inch downward, from 8.6 percent in October 2011 to 8.2 percent in October 2012. The Anniston‐Oxford metro area had an underemploy‐ ment rate of 19.7 percent based on a 2011 CBER survey. Applying this rate to October 2012 employment data gives an estimated 9,785 underemployed workers. Added to 4,415 unemployed, there was an available labor pool of 14,200 for the metro area; 3.2 times the number of unem‐ ployed. Employment forecasts suggest improvement in 2013 with an anticipated growth rate of 1.8 percent. GDP growth of 2.4 percent is expected in the coming year. With 13,800 nonfarm jobs, government remained the largest employer in Anniston‐Oxford in 2012. Most growth in this sector was in state and local government, which increased employment by 500 to 8,800 in the past year. Jobs in the area’s federal government sector decreased by 200 to total 5,000. After news at the beginning of the year that 562 civilian employees would be laid off at the Anniston Army Depot, it was announced that the Depot would keep 386 of those employees through March 2012. Employment cuts were not as steep as anticipated, however, and overall 172 employees were laid off or retired, with a few moving into vacant positions. Some additional layoffs were due to the closure of the Anniston Chemical Incinerator. The Depot saw some positive activity this year when it opened a new $18 million small arms repair facility. Other bright spots were the city of Anniston constructing a new LEED certified justice center, and increased revenues from the new 10 cent sales tax rate. The underemployment rate is based on 2011 underemployment data collected by The University of Alabama’s Center for Business and Economic Research. Applying this rate to October 2012 labor force data results in an estimated number of employed residents who were underemployed. Totaling unemployed and underemployed residents gives a more realistic measure of the available labor pool in a metro area. Prospective employers must be able to offer the underemployed higher wages, better benefits or terms of employment, or some other incentives to induce them to change jobs. 18 Alabama Metropolitan Areas Manufacturing employment remained steady at 5,700, Nonfarm Employment or 11.7 percent of nonfarm employment as of October Total 2012. BAE Systems closed one of its Anniston facilities October Change from October 2011 dedicated to vehicle upgrade and overhaul at the end of 2012 Number Percent 2012 and all of its 145 employees were released from their Alabama 1,887,900 13,700 0.7 contracts. The layoffs are a part of a national trend of mili‐ Anniston‐Oxford 48,700 900 1.9 tary cutbacks. Toward the end of the year BAE Systems Auburn‐Opelika 53,000 ‐2,100 ‐3.8 received a $37.6 million U.S. Army vehicle upgrade con‐ Birmingham‐Hoover 489,500 200 0.0 tract to provide spare parts and kits needed to convert Decatur 55,600 900 1.6 Dothan 57,600 ‐200 ‐0.3 250 RG33 Mine Resistant Ambush Protected Vehicles into Florence‐Muscle Shoals 56,100 700 1.3 Medium Mine Protected Vehicles (MMPV). This did not Gadsden 35,800 0 0.0 restore any of the 145 jobs that were cut, but it kept Huntsville 207,300 400 0.2 projected layoffs from being greater. General Dynamics, Mobile 177,000 2,200 1.3 which has a public‐private partnership with the Anniston Montgomery 165,600 100 0.1 Army Depot, announced layoffs of 98 in January 2013 as Tuscaloosa 91,200 ‐2,700 ‐2.9 part of a normal step‐down in production. In Oxford, Net Jobs in Metropolitan Areas 400 Associated Metal Cast and FabArc Steel Supply created Net Jobs in Nonmetro Counties 13,300 35 jobs with two new metal manufacturing facilities. The Note: Nonfarm employment (jobs) is by place of work. auto supplier Bridgewater Interiors is completing a $5.5 Source: Alabama Department of Labor. million expansion in Oxford, adding 60 jobs in 2012 with another 27 on the way in 2013. New and established local businesses were bolstered Manufacturing by developments in the Anniston‐Oxford metro, causing October Change from Percent of retail sector employment to expand by 100 to 5,800. 2012 October 2011 Area Jobs Patriot Joe’s Ales at Heroes in Weaver is the first in the Alabama 245,000 6,900 13.0 area to serve beer brewed at the eatery and bar. Cheaha Anniston‐Oxford 5,700 0 11.7 Brewing Company followed not long after when they Auburn‐Opelika 5,800 ‐100 10.9 requested zoning approval needed to open a restaurant Birmingham‐Hoover 36,300 1,000 7.4 and brewery at the site of the former Louisville & Nashville Decatur 12,500 300 22.5 rail depot. Oxford’s retail offerings will increase when Dothan 5,000 100 8.7 Publix opens in the new Oxford Commons in 2013; tenants Florence‐Muscle Shoals 7,900 200 14.1 include Panera Bread and Academy Sports and Outdoors. Gadsden 5,200 100 14.5 Tourism dollars poured into the metro area as the Huntsville 20,800 ‐1,100 10.0 Mobile 15,600 ‐300 8.8 Sunny King Criterium, the Noble Street Festival, and the Montgomery 18,000 1,600 10.9 Woodstock 5k at Wig’s Wheels attracted thousands. Other Tuscaloosa 13,100 200 14.4 area developments will continue to attract tourists in the Source: Alabama Department of Labor. coming years. Coldwater Mountain Trail, which developed an 11‐mile segment in Services 2012, has about $300,000 in grants for use Change from October 2011 on its next phase of development and plans October Total Professional Educational Leisure and to add 20 miles to the trail in 2013. Anniston 2012 Services and Business and Health Hospitality received a $50,000 grant to extend the Chief Alabama 697,900 15,900 5,700 2,200 4,700 Ladiga Trail, which goes through town and Anniston‐Oxford 17,100 300 100 100 100 eventually on to Atlanta. The Alabama Auburn‐Opelika 17,100 ‐400 ‐100 ‐100 ‐200 Scenic River Trail organization hopes to draw Birmingham‐Hoover 195,100 4,100 1,300 800 2,000 more interest by placing signs on Terrapin Decatur 18,700 200 100 0 100 Creek that show a map of the river trail and Dothan 21,100 0 0 0 0 its nearby attractions. A new splash pad, Florence‐Muscle Shoals 20,500 500 100 100 200 funded through a $100,000 Community Gadsden 15,900 0 200 ‐100 0 Development Block Grant, replaced the pool Huntsville 91,100 2,500 1,500 400 400 at the former Hamilton Boys and Girls club. Mobile 71,500 500 ‐100 200 300 Renovations and investments were Montgomery 60,100 ‐300 200 ‐200 ‐100 made in Anniston‐Oxford area buildings Tuscaloosa 28,600 ‐500 0 ‐200 ‐300 during the year. The Oxford Board of Source: Alabama Department of Labor. Education approved $29.8 million in construction and renovation projects for Oxford schools, including a career Alabama Metropolitan Areas 19 technology building at Oxford High School and $1.6 million in renovations to Coldwater Elementary. Anniston High School underwent renovation to create a space for the new two‐year cosmetology program, the 10th career and technical education program at the school. Anniston’s streets received a visual upgrade by way of a 90‐foot mural on the corner of West 15th Street and Glen Addie Avenue, a stop on the Anniston Civil Rights and Heritage Trail which depicts scenes from the street’s historical center of black trade. The Anniston‐Oxford metro was one of only two metro areas in the state to shrink in size in 2011; its population of 117,797 in July 2011 was down 0.5 percent from one year earlier. Area housing markets were only mildly active in 2012. The Anniston‐Oxford FHFA House Price Index in the third quarter was flat for the first nine months of the year, but was still better than the 0.5 percent drop statewide. Just 35 single‐family units and no multi‐family units were permitted in the area through the first three quarters of 2012. Home sales fared better; the 832 homes sold over the first three quarters was a 5.6 percent increase from the same period in 2011. In spite of mixed employment numbers, median family income in Anniston‐Oxford grew 1.4 percent to $52,200 in FY2012 but was still just 94.2 percent of the statewide median. Per capita income in 2011 increased 3.2 percent to $31,758, slightly lagging the statewide gain of 3.5 percent. Total bank deposits rose 2.5 percent from 2011 to $1.65 billion as of June 30, 2012. Auburn‐Opelika Manufacturing dominated the news in the Auburn‐ 55 Opelika metro area during 53 2012, with new and expand‐ 51 ing companies primarily in 49 the automotive and medical 47 products industries. Still, 45 after posting a relatively 2002 2007 2012 strong increase of 1,100 Source: U.S. Bureau of Labor Statistics. jobs in 2011, nonfarm employment averaged just 52,400 for the first 10 months of 2012, down about 1,000 from the same period in 2011. Looking at October 2012 compared to October 2011, employment fell by a steeper 2,100. A 1,300‐job decline among state and local government entities accounted for most of the losses; no sectors added jobs. Both the area’s labor force and the number of employed residents fell by about 1,500 during this 12‐month period, leaving the unemployment rate little changed from a year ago at 6.7 percent—tied for lowest among Alabama’s 11 metros. Despite a dip in employment in 2012, Auburn‐Opelika is well‐positioned for growth. A 2011 CBER survey found an underemployment rate of 20.9 percent for the metro area. Applying this rate to October 2012 employment data gives an estimate of 13,174 underemployed residents. Combined with 4,556 unemployed, the area’s available pool was Nonfarm Employment (thousands) 20 Alabama Metropolitan Areas around 17,730, 3.9 times the number of unemployed. Forecasts for 2013 from the Center for Business and Economic Research have employment rebounding with an increase of 1.2 percent. Area GDP is expected to rise 2.1 percent during the year. Activity was strong in Auburn‐Opelika’s manufacturing sector during 2012, although employment declined by 100 between October 2011 and October 2012. Manufacturing accounted for 10.9 percent of nonfarm jobs; below the 13.0 percent statewide. A number of new industries and expansions set for completion in 2013 will more than make up for the 250 positions that Briggs and Stratton will phase out as it moves production of horizontal shaft engines to China. The $30 million GE Aviation plant, scheduled to open in March in Auburn’s West Tech Park, will hire 300 to 400 as production ramps up and will emphasize employing military veterans. SiO2, a manufacturer of products for the biologi‐ cal drugs industry, broke ground in Auburn for a $90 million facility that should be complete early in 2013 and will create around 300 jobs; SiO2 supplier Capitol Medical Technologies will also locate in the area. The Auburn‐Opelika area’s automotive supplier cluster continues to grow. With the opening of ARKAL Automotive’s $7.2 million facility that will employ 25 in Auburn’s Technology Park West, the metro has 22 manu‐ facturing facilities of foreign‐based companies. Seung Chang Airtek (SCA)’ s new plant expanded its operations in Auburn; Daewon America is investing more than $13 million and hiring 32 as it opens a new production line in 2013 at its Opelika facility. Opelika’s Mando America is also adding a production line at its North American corporate head‐ quarters, with an investment of $24.3 million that will add 30 jobs when complete this spring. German auto supplier Rausch & Pausch LP (RAPA) announced plans for an $18 million U.S. headquarters and production facility in Auburn Technology Park West that will open in the fall and create 105 jobs over five years. Other automotive supplier expansions in 2012 included Wiedmann Plastics’ $15 million investment in its Opelika plant with 40 jobs and Hanwha’s $4.2 million investment that added around 30 positions. Among other developments, Aluminum Technology Schmid NA is investing $3 million and hiring 15; German precision metal works company Wuerz Precision Technologies will open its first U.S. operation in the Schmid plant with a $2.8 million investment and 12 employees. Medical device maker MDVice plans to create 18 jobs after a $1.2 million expansion. MasterBrand Cabinets held a job fair in October as it looked to hire about 125 production employees for a new third shift at its Auburn facility. Opelika approved an addition to automotive engineering and customization company APR, which plans to hire 25 workers. A grant to KD Bearings will help with training and facilities improvement. Services employment, which fell by 400 in the 12 months ending in October 2012, was boosted late in the year by the addition of around 175 web chat customer service and sales representatives at Afni Inc.’s Opelika operations center. Earlier in August, the Goodwill Career Center hired for 400 full‐ and part‐time positions in security, ticket‐taking, guest services, and other functions related to event operations. In healthcare developments, an American Family Care Clinic opened in the TigerTown shopping center. Auburn University reached an agreement with Edward Via College of Osteopathic Medicine for a campus in Auburn, with plans for collaborative biomedical research and other healthcare projects. The first class of 150 students is expected to enter in the fall of 2015. However, the plan drew opposition from the Alabama Osteopathic Medical Association due to potential conflicts in areas including student recruitment with Dothan’s Alabama College of Osteopathic Medicine which is set to open in 2013. In other services‐related developments, Jo‐Ann Stores undertook a $2 million expansion of its Opelika distribution center. Bank deposits in the Auburn‐Opelika metro were up a strong 5.2 percent during the year ending June 30, 2012 to total $2.1 billion. As the presence of Auburn University is a major influence in the metro area, Auburn‐Opelika had 30.9 percent of its workforce in state and local government employment in October 2012, well above the state’s 16.7 percent share. The university, which enrolled 25,134 students in Fall 2012, had a number of construction projects ongoing during the year, including renovations to the Lowder Business Building, construction of a $47 million small animal hospital, a new $53 million Wellness and Recreation Center, a $51 million student residence hall, a Department of Kinesiology facility, and the Center for Advanced Science Innovation and Commerce. Many of these projects will be completed in 2013. Auburn’s Cyber and Security Center opened at Auburn Regional Airport late in 2012, with the University’s new senior counsel for national security programs, Lt. General Ron Burgess, over‐ seeing the center’s programs. A new research facility to develop and test poultry feed is a joint venture with the poultry industry. With a growing South Korean industrial and cultural presence in the area, Auburn opened a Korea Center, offering noncredit language and culture classes in partnership with Keimyung University. The Auburn‐Opelika metro saw a number of new retail stores and restaurants open during 2012. Publix opened in Auburn’s The Shoppes at Cary Creek, with Nail Boutique, Urgent Care, and Louie’s Chicken Fingers among other ten‐ ants. Opelika’s TigerTown added a Shoe Station; outdoor sporting goods retailer Gander Mountain is building a store nearby. A 13‐screen Carmike Cinema planned for Opelika is expected to open late in 2013. Demolition of the Heart of Auburn Inn early in 2013 will make way for The Shoppes at the Heart of Auburn which will be anchored by CVS. Both Auburn’s Kmart and Sears stores closed in 2012; a smaller Sears Hometown Store is locating in Opelika’s Midway Plaza. Strong population growth continued in the Auburn‐ Opelika metro during 2011, adding almost 2,700 residents during the year ending July 1 for a 1.9 percent gain, compared to a 0.4 percent increase statewide. Housing Labor Force Civilian Labor Force Change from October October 2011 2012 Number Percent Alabama Anniston‐Oxford Auburn‐Opelika Birmingham‐Hoover Decatur Dothan Florence‐Muscle Shoals Gadsden Huntsville Mobile Montgomery Tuscaloosa 2,182,838 54,085 67,650 528,367 74,399 65,300 71,239 45,961 213,274 193,953 170,398 99,208 ‐5,535 696 ‐1,561 ‐431 469 ‐71 386 141 307 1,947 ‐231 ‐1,849 ‐0.3 1.3 ‐2.3 ‐0.1 0.6 ‐0.1 0.5 0.3 0.1 1.0 ‐0.1 ‐1.8 Source: Alabama Department of Labor. Total Employment Change from October October 2011 2012 Number Percent Alabama Anniston‐Oxford Auburn‐Opelika Birmingham‐Hoover Decatur Dothan Florence‐Muscle Shoals Gadsden Huntsville Mobile Montgomery Tuscaloosa 2,011,638 49,670 63,094 491,124 68,812 60,377 66,054 42,048 199,055 177,069 156,719 91,506 5,491 870 ‐1,529 2,610 869 ‐45 739 104 1,242 3,320 624 ‐1,724 0.3 1.8 ‐2.4 0.5 1.3 ‐0.1 1.1 0.2 0.6 1.9 0.4 ‐1.8 Note: Total employment is by place of residence. Source: Alabama Department of Labor. Unemployment Rate 7.5 United States 8.5 7.8 8.3 8.2 8.6 Alabama Anniston‐Oxford Auburn‐Opelika Birmingham‐Hoover Decatur Dothan Florence‐Muscle Shoals Gadsden Huntsville Mobile Montgomery Tuscaloosa October 2012 6.7 6.6 7.0 7.6 7.5 8.1 7.5 7.6 7.3 7.8 8.5 8.5 6.7 7.1 8.7 9.5 8.0 8.5 7.8 7.7 October 2011 Source: Alabama Department of Labor. Alabama Metropolitan Areas 21 retail trade businesses, were in sectors where wages are generally relatively low. This emphasizes the importance of area initiatives to attract high tech and other high wage employment. Job losses during the year were concentrated in the metro’s construction and government sectors. Across all industries, the Birmingham‐Hoover metro added 200 jobs between October 2011 and October 2012. This increase, albeit modest, was a positive change from the previous four years when October to October employment declined. Sentiment among area business executives, measured by the Center for Business and Economic Research (CBER)’s Alabama Business Confidence Index™ (ABCI) showed confidence that the Birmingham‐Hoover economy was expanding through the first three quarters of 2012; the fourth quarter reading was flat as uncertainty about the national economy depressed expectations. Birmingham‐Hoover ABCI panelists generally expected sales, profits, hiring, and capital expenditures at area businesses to be flat or improving throughout 2012. CBER forecasts have nonfarm employment in the Birmingham‐Hoover metro growing by 0.4 percent in 2013. Area GDP could increase by a larger 1.6 percent during the year. Total employment of area residents rose to 491,124 in October 2012, up 2,610 from a year earlier for a 0.5 percent increase. Birmingham‐Hoover’s labor force contracted by a slight 431; employment growth and fewer residents looking for work combined to lower unemployment from 7.6 percent in October 2011 to 7.0 percent in October 2012, third lowest among the state’s 11 metro areas. According to a 2011 CBER survey, an estimated 26.9 percent of employed residents of the seven‐county metro area felt that they were underemployed, above the statewide underemployment rate of 24.0 percent and second highest among the metros. Applying this rate to October 2012 labor force data indicates that an estimated 132,201 Birmingham‐Hoover residents were underemployed. Adding in the 37,243 unemployed in October, the area’s available labor pool was around 169,400 Birmingham‐Hoover residents, 4.5 times the number of unemployed. Businesses Progress on projects in Nonfarm Employment that are considering locating in the Birmingham‐Hoover downtown Birmingham, (thousands) metro or are hiring for expansion or replacement can view 540 growth in the area’s underemployment as an opportunity, although prospective transportation and employers will need to offer these workers some incentive 520 logistics sectors, and to change jobs in the form of higher wages, better benefits continuing healthcare or terms of employment, etc. 500 developments were Manufacturing was a growth sector for the sources of strength in the 480 Birmingham‐Hoover metro, with 1,100 durable goods Birmingham‐Hoover metro 2002 2007 2012 manufacturing jobs added between October 2011 and Source: U.S. Bureau of Labor Statistics. area during 2012. Services October 2012. Still, with 36,300 workers, manufacturing businesses drove employ‐ accounted for just 7.4 percent of total nonfarm employment ment growth, adding 4,100 jobs during the 12 months in October—lowest among the state’s metro areas. Close ending in October 2012. About 400 of these positions were proximity to both the Mercedes‐Benz and Honda plants has in ambulatory healthcare, while professional, scientific, and helped the Birmingham‐Hoover metro attract automotive technical services and management of companies and suppliers as well as provide jobs for area residents who are enterprises each contributed 200 net jobs during the period. willing to commute to the OEMs. The addition of Mercedes But the large share of the area’s job gains, including 900 in C‐Class production will bring about 1,000 new jobs at administrative support and waste management and 2,100 the plant and new and expanding suppliers during 2013, at food services and drinking places, as well as 2,600 among providing new opportunities for the metro area. Kamtek, activity picked up in 2012, with 1,074 homes sold in the first 10 months of the year up 8.8 percent from the same period in 2011. However, prices did not recover; the FHFA House Price Index for third quarter 2012 was 0.5 percent lower than a year earlier and 11 percent lower than five years ago. There were 510 single‐family homes permitted during the first three quarters of 2012, about 100 more than a year earlier, but just 56 multi‐family building permits were issued. The area continued to develop its infrastructure during 2012. Auburn issued warrants for construction of a new elementary school and to purchase land for a new high school, Opelika broke ground on a $40 million high school that will be completed in 2014, and the Lee County Board of Education awarded a contract for construction and renovations at Beauregard High School. New Exit 50 on I‐85 in Auburn opened, providing quicker access to Auburn Technology Park, and work continued on Cary Creek Parkway. A $200,000 Appalachian Regional Commission grant to Notasulga will improve public water services. Opelika Power Services’ new $3.7 million facility is integral to the fiber optic network being built throughout the city. Ongoing streetscaping and other developments in Opelika’s downtown earned the American Planning Association’s Outstanding Small Town or Rural Plan award. Outdoor opportunities for area residents will increase due to funding to create mountain bike trails in Auburn’s Chewacla State Park and to develop trails and other facilities in Opelika’s Siddique Nature Park. Auburn voters approved a bond issue for parking improvements downtown and for work at the Frank Brown Recreation Center. Both 2011 per capita income of $29,208 and average annual wages of $37,670 were below statewide averages due to the large percentage of students in the area. However, FY2012 median family of $61,400 was higher than Alabama’s and ranked third highest among the 11 metros. 22 Alabama Metropolitan Areas which continued work on a $310 million expansion that will create around 400 jobs, also purchased the former Del Monte distribution warehouse in Pinson Valley. G & B Global is a new supplier in Jefferson County, investing $4.8 million and hiring 75. Expansions were announced at Walker County manufacturer Fontaine Trailer, which is adding 100 workers, and auto suppliers Hayashi Telempu NA (75 jobs), which opened as Amtex early in 2012, and Vistech Manufacturing Solutions (10 jobs). In St. Clair County, Eissmann Automotive is expanding and adding 35 jobs, while a $13.5 million project at Yachiyo Manufacturing will boost employment by 66. Birmingham motorcycle manufacturers Motus, which is relocating to the former Barber Motorsports Museum downtown, and Confederate Motors, both planned expansions during the past year. Other industrial developments included a planned $2.8 million expansion and 50 new jobs at conveyor‐belt manufacturer Dayjon in Bessemer. Birmingham’s O’Neal Industries is growing its metal products and processing services and hiring 15. New industry Nufab Rebar is investing $7 million and bringing 75 jobs to Riverside in St. Clair County. Boatright Railroad Products’ $55 million railroad crosstie plant in Chilton County will begin opera‐ tions in the first quarter of 2013; employment should reach 100 by the end of the year. Prospects are looking up for Kaiser Aircraft Industries, which purchased the assets of the former Alabama Aircraft Industries in 2011; the company received a five‐year contract to build helicopter parts for the U.S. Army. Birmingham Fastener expanded its Pratt City operation, while outdoor furniture manufacturer Summer Classics consolidated its operations at the old Moore‐Handley building in Pelham. However, Vulcan Materials laid off personnel and Rock Mountain Mining idled 124 workers early in 2013. Completion of Norfolk Southern’s $97.5 million Birmingham Regional Intermodal Facility late in 2012 gives a big boost to the area’s transportation, warehousing, and distribution clusters. While the facility will employ about 200 directly, it is expected to spur growth among businesses that use its services. The Norfolk Southern facility and other area railroads attracted Memphis’ Intermodal Cartage to open an area office; employment is expected to reach 30 in 2013. An expansion at logistics company Access America Transport will create 45 jobs. CSX’s proposed railroad line and overpass near Elmwood Cemetery could add about 50 Birmingham jobs. In Bibb County, ThyssenKrupp Materials new $13 million processing and distribution center will ramp up from 20 to 45 jobs over five years. Sporting goods company Hibbett’s purchased the former CVS Caremark building for its new headquarters, planning to add about 50 jobs; Hibbett’s is also building a warehouse and distribution center in Alabaster where a $16 million facility for Alabama Crown beverage distributor will employ 70. Teasy Tea moved the headquarters for its wholesale division to Birmingham. However, Birmingham‐based Adams Produce filed for bankruptcy and laid off all its workers. Gross Domestic Product 100% Rest of state, 20.0 90% 80% 70% Tuscaloosa, 5.1 Montgomery, 8.7 60% Mobile, 9.2 50% Huntsville, 12.1 40% 30% Dothan, 2.7 Decatur, 2.8 0% Florence‐ Muscle Shoals, 2.4 Birmingham‐ Hoover, 32.0 20% 10% Gadsden, 1.5 Auburn‐ Opelika, 2.1 Anniston‐ Oxford, 2.2 Metro Percent of State GDP, 2010 Source: U.S. Bureau of Economic Analysis. Dedication of the Benjamin Russell Hospital for Children in June culminated a $400 million plus project to provide expanded, state of the art facilities for children’s medical care. A $57 million expansion at Princeton Baptist Medical Center, completed in November, includes a new lobby and chapel and enlarged and upgraded operating rooms. UAB’s Comprehensive Cancer Center received a grant to investi‐ gate ways to reduce cancer care costs and will add 50 jobs. The university’s anesthesiology department moved into new offices at its Women and Infants Center/Radiation Oncology facility. While Cardiovascular Associates of the Southeast occupied a new $21 million building at the Colonnade. However, the fate of several potential projects was unre‐ solved in 2012, as Brookwood Hospital sought state ap‐ proval for a freestanding Emergency Room, HealthSouth worked toward establishing a new physical rehabilitation hospital in Shelby County, and objections to Trinity’s plan to occupy the unfinished HealthSouth hospital on U.S. Hwy. 280 continued. Jefferson County converted its Cooper Green Mercy Hospital to an urgent and primary care facility at the start of 2013, discontinuing inpatient care and adding 210 layoffs to the 100 jobs cut at the hospital earlier in 2012. With over 80 tenants, Innovation Depot continued to spur development of technology‐related businesses. Several of the area’s biotechnology companies, including Soluble Therapeutics and Vaxin, received NIH grants for their work during the year. Vivo Biosciences had one of the top 10 innovations of 2012, according to Scientist. And Agenta Biotechnologies spun off Magenta Medical to market a new surgical membrane. However, the area will have to work to keep its biotech firms, as Vaxin moved out‐ of‐state. The National Business Incubator Association recognized Innovation Depot for helping international entrepreneurs and companies find their way into U.S. markets. Expanding its research capabilities, Southern Alabama Metropolitan Areas 23 Research Institute (SRI) opened an expanded facility with high‐bay labs capable of testing rocket components and aircraft sections, adding 24 jobs. The health of Birmingham‐Hoover metro area banks generally improved in 2012, with 300 jobs added during the 12 months ending in October and deposits up 1.1 percent to $29.4 billion for the year ending June 30, 2012. Regions Bank completed the $1.2 billion sale of Morgan Keegan and repaid $3.5 billion in TARP money and repurchased warrants during the year. The bank was hiring for 100 openings early in 2012 and could add up to 100 employees due to its new relationship with PrimeVest Financial Services. BBVA Compass, which completed a $362 million computer system upgrade, added about 30 employees as it expanded its Birmingham mortgage operations center. Although employment in the area’s insurance industry was flat, Proassurance was adding about 40 jobs in Birmingham with a new processing center. Protective Life undertook a $15 million rebranding campaign and invested $10 million in a customer call center. In other services‐related developments, Pell City’s $48 million Alabama Department of Veterans Affairs seniors facility opened in late spring, creating over 250 jobs. Work got underway on a $6.1 million Alabama Department of Human Resources facility in Pell City. Birmingham saw a new Disability Rights Resource Center and a new headquarters for Independent Living Resources. Work progressed on the $201 million makeover of Birmingham‐Shuttlesworth International Airport, with the new Concourse B nearing completion. The Dwyer Group, with several service franchises, added 55 area jobs. New ownership brought new features to the former Alabama Adventure, now named Alabama’s Splash Adventure Waterpark. Two managers hired by the City of Hoover will work to attract events to the former home of the Birmingham Barons; Hoover High School football games and the Southeastern Conference baseball tournament are on the schedule. The Barber Vintage Motorsports Museum, recognized as one of the must‐see private museums by Four Seasons, will experience expansion in 2013. 2013 will be an exciting year for the City of Birmingham as the many projects under construction and the plans laid during 2012 are realized. Regions Field, the new home of the Birmingham Barons baseball team on the city’s South‐ side, broke ground early in 2012; the $64 million, 8,500‐seat stadium project will be ready for the first home game of 2013 on April 10. Also slated for the site are a Negro League Museum, family fun area, banquet hall, a private club area, and luxury suites, which are sold out. A partner‐ ship between the Barons and Children’s of Alabama will make three surface lots available for game parking, bringing to 2,500 the number of spaces within a five‐minute walk of the stadium. The adjoining Railroad Park, a catalyst for de‐ velopment in the area, received the Urban Land Institute’s Urban Open Space Award for 2012. Development near the 24 Alabama Metropolitan Areas park is increasing, with the adjacent Avondale commercial district seeing locally‐sourced Freshfully, Painted Shovel Mercantile, and Saw’s Soul Kitchen join anchor Avondale Brewing Company. Hiring began in the fall at the Westin Birmingham Hotel, a 294‐room, $50 million project that will anchor the “Uptown” entertainment district at the Birmingham‐ Jefferson Convention Complex when it opens January 31. With Octane Coffee, Todd English P.U.B., and Texas de Brazil steakhouse committed to the development, four to six spaces retail spaces were still available late in 2012. Planning continued for development of downtown Birmingham’s Theater District; current efforts to restore the Lyric Theater were boosted by a $500,000 commitment from the City of Birmingham. The new Dorothy Jemison Day Theater at the Alabama School of Fine Arts provides a 500‐ seat performance venue and student laboratory, which is being used by area arts groups. Other areas in the downtown vicinity also saw activity pick up in 2012. In the Lakeview district, completion of 29 Seven added 54 apartments and retail to the area. New entertainment venues and restaurants in Five Points South included Black Market Bar and Grill and Infinity Bar. World of Beer joined Pepper Place’s Hop City Craft Beer and Wine in the craft beer market. Waffle House will open in 2013. Plans moved forward for a Homewood Suites at the former Five Points Music Hall site. Birmingham’s office market, which was generally relatively stable in 2011 and saw modest development in 2012, should experience moderate absorption during 2013, particularly in the downtown area. Although Merrill Lynch moved its offices from downtown Birmingham to Homewood, more companies moved into the city in 2012 than moved out. Firms making or planning a move down‐ town included Big Communications, Harbert Management, and Dunn Building. Among other companies renovating and moving into existing buildings in the downtown Birmingham area were Cadence Bank, which relocated to the Concord Center; web design firm Kinetic Communications, moving into the former Zen nightclub building; Seal Hanson LLC in the Birmingham Realty building; and the Birmingham School of Law, consolidating its facilities in the former German Auto Building. The federal government office presence downtown will grow with a $19 million U.S. Treasury building, set to start construction early in 2013. A $41 million project to modernize the federal building and courthouse will be complete in the fall. The former Regions Plaza will see new life as the home of Viva Health and UAB administrative offices. City incentives are helping turn the closed McRae’s store into a Planet Fitness and retail shops. A public/private partnership in the newly‐designated Sloss Business District has Integrated Medical Systems International renovating a facility as a wellness center and relocating more than 150 employees from Homewood following refurbishment of its existing building next door. Retail activity picked up across the Birmingham‐Hoover metro as the area’s recovery from the recent recession continued. A $60 million redevelopment of Hoover’s Galleria got underway with updates to parking decks, entrances, and restrooms; a Von Maur department store will open in the former Macy’s space this fall. New mall stores included Pandora, Destination Maternity, Rainbow and Torrid; outparcel developments included Jared Jewelry and Earth Fare. The Galleria’s Wynfrey Hotel will be re‐ branded as the Hyatt Regency Birmingham when renova‐ tions are completed this spring. New stores at the Summit in 2012 included Michael Kors, Vineyard Vines, a new pro‐ totype Ann Taylor Loft, and North Face. Eateries opening at the Summit during the year focused on fast dining options and included Seasons 52 and Lime Fresh Mexican Grill. Work progressed on Target at Colonial Brookville Village; the store will open in March and employ around 200. A Nordstrom Rack store is slated for the River Ridge Shopping Center on U.S. Hwy. 280. Crestwood (formerly Eastwood) Festival Center was revitalized by new owners who signed new tenants including Elaine’s Boutique, Bella’s Fashions, Flavor Fashion Jewelry, Earth Garden Naturals, and a number of services businesses. The Outlet Shops of Grand River added Loft, Motherhood & Maternity, Fossil, and a Johnston & Murphy factory store. Boutique retailer Festivity opened a Home‐ wood store. Among other retailers and restaurant chains opening stores in the Birmingham‐Hoover area were Family Dollar, Steak ‘n Shake, Dunkin Donuts, Bojangles, and Mooyah burger. Grocery options increased with an Aldi store in Shelby County, Hoover’s Earth Fare, and a reno‐ vated Winn‐Dixie on Montevallo Road; privately‐owned Belle Foods purchased and rebranded stores including Bruno’s and Food World. Gardendale saw significant retail and restaurant development during 2012. Abbey Carpet opened its first Birmingham area showroom in Roebuck Marketplace. However, Cotton’s in Ensley closed after 90 years in business. Cash‐strapped Jefferson County struggled to maintain essential services during 2012, with no replacement for the occupational tax that was struck down in 2011. The county continued to lay off personnel, cutting 180 jobs perma‐ nently early in the year. More than a year out from the November 9, 2011 $4.23 billion bankruptcy filing, Jefferson County had not reached agreement on a plan of adjustment. One creditor, Bank of America, sold $225.7 million of the county’s bonds and dropped out of the case. Sewer rates in the county will go up 2.7 percent, the first rate hike in years. With the economy improving, other area municipalities began to get postponed projects back on track. Alabaster moved forward with scaled back plans for a new city hall complex; Fultondale made progress on initiatives including a new fire station, library, tennis courts, and a rebuilt Black Creek Park; and Trussville undertook road improvements and refurbishing Jack Wood Stadium. Gardendale’s former Caulfield Square is being redesigned as Gardendale City Center with a new city hall, retail, and restaurants. Income and Wages Per Capita Income 2011 Per Capita Income Percent Change from 2010 $41,560 34,880 31,758 29,208 40,816 32,071 34,654 32,038 31,844 40,126 32,779 36,450 34,305 4.4 3.5 3.2 3.6 4.4 2.7 3.2 3.1 2.9 3.4 4.0 2.8 3.5 United States Alabama Anniston‐Oxford Auburn‐Opelika Birmingham‐Hoover Decatur Dothan Florence‐Muscle Shoals Gadsden Huntsville Mobile Montgomery Tuscaloosa Source: U.S. Bureau of Economic Analysis. Average Annual Wage 2011 All Industries Average Wage Percent of State United States Alabama Anniston‐Oxford Auburn‐Opelika Birmingham‐Hoover Decatur Dothan Florence‐Muscle Shoals Gadsden Huntsville Mobile Montgomery Tuscaloosa $45,230 39,180 35,640 37,670 41,690 37,630 34,700 34,320 33,330 49,070 39,190 39,020 38,240 115.4 100.0 91.0 96.1 106.4 96.0 88.6 87.6 85.1 125.2 100.0 99.6 97.6 Source: U.S. Bureau of Labor Statistics, Division of Occupational Employment Statistics, May 2011. Median Family Income FY2012 United States Alabama Anniston‐Oxford Auburn‐Opelika Birmingham‐Hoover Decatur Dothan Florence‐Muscle Shoals Gadsden Huntsville Mobile Montgomery Tuscaloosa $65,000 $55,400 $52,200 $61,400 $62,800 $55,900 $51,900 $53,700 $47,600 $71,700 $51,900 $60,100 $56,500 Note: Chilton and Walker counties are not included in the estimate for the Birmingham‐Hoover metro and Henry County is not included in the Dothan MSA estimate. Source: HUD Office of Economic Affairs, Economic and Market Analysis Division. Alabama Metropolitan Areas 25 Montevallo made substantial progress on its Main Street project, with streetscaping and roadways linking the city’s downtown and the University of Montevallo campus. The university’s new bookstore and promenade will open in 2013; Alabama Power’s former building downtown will be redeveloped for university classroom space. The process of recovering from the April 2011 tornadoes and from a January 2012 tornado continued. Voters in the City of Birmingham approved Mayor William Bell’s plan for a $150 million bond initiative that will be used to fund infrastructure improvements and other initiatives. Projects completed in the City during the year included renovation of Crestwood Park and construction of Oxmoor Valley Community Center. The first of four planned recreation centers was under construction off 15th Avenue North. Red Diamond Inc. donated its former Vanderbilt Road headquarters to the YMCA of Greater Birmingham for the first facility serving the Norwood and North Birmingham area. The City Council is funding redevelopment of the historic 10‐story Ramsay McCormick building in Ensley. 2012 saw the opening of the new Huffman High School, a new Hayes K‐8 school, and Charles A. Brown Elementary in Belview Heights. However, with the state takeover of the Birmingham City Schools due to the system’s finances, as many as eight to 10 schools may be closed in 2013 and a number of buildings put up for sale, including the Board of Education building, since the Board is consolidating its offices in the former Wells Fargo building. Population in the Birmingham‐Hoover metro reached 1,132,264 in July 2011, up 0.3 percent from a year earlier. Area residents fared well in terms of income and wages relative to other Alabama metro areas—2011 average annual wages of $41,690 and FY2012 median family income of $62,800 ranked second among the metros, while 2011 per capita income ranked first and was up a strong 4.4 percent from 2010. Real estate activity picked up across the metro during 2012. A total of 9,374 homes were sold during the first 10 months of the year, a 10.8 percent increase from the same period in 2011. Prices were up slightly in third quarter 2012 compared to a year earlier, although they remained 8.2 percent below five years earlier, according to the FHFA House Price Index. Single‐family building permits during the first nine months of the year were up by 120 from 2011. Area homebuilders see positive trends, but report being selective in price range and location. After years of growth in single‐family homes and very little multi‐family construction, apartment development picked up strongly in 2012. A total of 926 multi‐family units were permitted during the first three quarters of 2012, com‐ pared to around 200 a year earlier. Occupancy reported at close to 95 percent by Rock Apartment Advisors indicates the need for new apartment space. Construction of the Parc at Grandview was completed, with 334 apartments leasing. The first apartments in the 250‐unit Ashby at Ross Bridge were ready in Fall 2012; units in the 223‐apartment Tapestry Park off Montclair Road were also coming on the market in the fall. Other apartments under construction included 122 26 Alabama Metropolitan Areas units at The Hill on Oxmoor Road and 135 in Moretti at Vulcan Park. Construction finally got underway on the Lane Park project, which will bring a Grand Bohemian Hotel and 276 apartments to Mountain Brook. Inland American is planning a 245‐unit development by Railroad Park. Decatur Job gains in the Decatur area’s sizeable manufacturing sector contributed to positive 57 trends in nonfarm employment over the past 55 year. Between October 2011 and October 2012 53 total payroll employment 2002 2007 2012 Source: U.S. Bureau of Labor Statistics. rose by 900 to 55,600; goods producing industries added 300 jobs, with service providing industries contributing 600. Forecasts for the metro’s employment during the coming year are positive; UA’s CBER expects about 1.5 percent employment expansion. GDP forecasts are also encouraging, with output growth of 2.3 percent expected in 2013. With total employment of 68,812 and a lesser 55,600 nonfarm jobs, the Decatur metro continues to be a net exporter of workers to nearby Huntsville. The area’s labor force expanded by a slight 0.6 percent in the 12‐month period ending in October 2012, while total employment grew by 1.3 percent. This caused unemployment to decrease from 8.1 percent in October of 2011 to 7.5 percent a year later. A 2011 survey by the Center for Business and Economic Research found an underemployment rate of 24.1 percent among workers in the Decatur metro. Applying this percentage to October 2012 labor force data gives an esti‐ mated 6,590 underemployed workers. Combined with 5,587 unemployed, there was an available labor pool of 22,177 for the metro area, 4.0 times the number of unemployed. Manufacturing held a 22.5 percent employment share in October 2012, higher than in any other metro area. Employment increased from the previous year with the addition of 200 jobs in durable goods and 100 in nondurable goods manufacturing. Area industries were very active in 2012 expanding and preparing for future growth opportu‐ nities. Some of the year’s highlights included United Launch Alliance (ULA) announcing its hiring of 75 to assemble 13 rockets in 2012, up from nine the previous year. ULA won a $398 million contract for construction of two satellites— a GPS satellite aboard a Delta IV rocket and an Air Force Mobile User Objective System‐4 satellite that will be put into orbit on an Atlas V rocket. The company is also design‐ ing commercial spacecraft to launch astronauts to the International Space Station in collaboration with Boeing, SpaceX, and Sierra Nevada. Other big news in 2012 was Hexcel Corp. acquiring 74 acres for expansion of its Decatur plant and announcing it Nonfarm Employment (thousands) 59 would spend $150.5 million to build a new acrylic fiber line which will add 35 employees to its current 150. Nucor recently received the Steel Manufacturers Association Achievement in Community Involvement Award for its response to the tornadoes of 2011; the company also expanded by eight employees when they added a steel mini mill. In other expansions, Daikin America will add 50 employees with a $75 million expansion. The company was selected as the Manufacturer of the Year by the Business Council of Alabama and Alabama Technology Network and fortified its status as the biggest maker of residential heating, ventilating, and air conditioning systems with its plans to purchase Goodman Global Group. Decatur GE added 30 jobs and an assembly line for top freezer refrigerators and plans to invest $432 million in green jobs by 2014. Feralloy Corporation invested nearly $8 million creating 13 new jobs, Gavilion increased an ongoing expansion by $6 million, and Toray Carbon Fibers America began a $97 million expansion adding 43 new employees. New manufacturing companies in the area made plans to break ground. Yates Industries, which repairs hydraulic and pneumatic cylinders, is building a $2.9 million facility on Refreshment Place and will hire 11. Jim ‘N Nick’s Bar‐B‐ Q acquired the former emu plant in Eva which will process their restaurant’s pork. Jemison‐Demsey announced it will bring 28 jobs with a $28 million metal processing plant. Brown‐Foreman Corporation is opening its second Alabama facility in Mallard Fox West and will create 125 jobs by 2014. The year closed with the announcement that BUSCHE would be coming to Hartselle’s old Copeland Corporation plant site with the intent of created over 200 jobs as an after‐market automotive parts supplier. Service providing sectors added 600 jobs in the Decatur metro during the 12 months ending in October 2012. The biggest gain was seen in transportation, warehousing, and utilities (200). Employment was bolstered by gains of 100 jobs in each of the following sectors: financial activity, professional and business services, leisure and hospitality, and state and local government. Area healthcare entities worked together this year as the Healthcare Authority of Morgan County, Lawrence Medical Center, Decatur General Hospital, and Parkway Medical Center all partnered with the Huntsville Hospital system. Both North Alabama Regional Hospital and Encore Rehabilitation will remain open despite threats to close them in 2011. Decatur Utilities (DU) extended natural gas and other services this year, even as the Morgan County Commission, Northeast Morgan County Water and Sewer Authority, and Hartselle utilities aligned to create an alternative source to DU. Other infrastructure developments included Rational Energies moving forward on a $23 million facility at the Decatur‐Morgan County Regional Landfill to convert plastics into fuel. Retail in the metro area was active with closings and openings; as a result retail employment remained flat for the year. New eateries included Mellow Mushroom pizza Housing Industry Residential Building Permits Single‐Family Change 2012 from 2011 Alabama 6,132 Anniston‐Oxford 35 Auburn‐Opelika 510 Birmingham‐Hoover 1,429 Decatur 59 Dothan 137 Florence‐Muscle Shoals 118 47 Gadsden Huntsville 1,583 Mobile 487 Montgomery 334 Tuscaloosa 409 457 3 101 120 5 ‐30 15 20 ‐16 ‐22 78 167 Multi‐Family Change 2012 from 2011 2,567 0 56 926 0 319 174 0 312 184 64 305 1,455 0 54 713 0 319 174 0 308 ‐176 13 ‐7 Note: Data are for permit‐issuing places only. Data for 2011 and 2012 cover the period January through September. Source: U.S. Census Bureau, Building Permits Survey. Total Homes Sold Alabama Anniston‐Oxford Auburn‐Opelika Birmingham‐Hoover Decatur Dothan Florence‐Muscle Shoals Gadsden Huntsville Mobile Montgomery Tuscaloosa 2012 Percent Change from 2011 33,313 832 1,074 9,374 978 792 1,095 566 4,737 2,878 2,646 1,488 6.3 5.6 8.8 10.8 5.2 ‐11.0 9.4 7.4 11.4 4.0 13.3 ‐1.9 Note: Data for both 2011 and 2012 cover the period January through October. Source: Alabama Center for Real Estate, The University of Alabama. Percent Change in FHFA House Price Index Q3 2011 to Q3 2012 Q3 2007 to Q3 2012 0.0 ‐0.5 0.0 ‐0.5 0.1 ‐1.1 ‐1.7 1.1 0.0 0.2 ‐3.5 ‐2.3 0.5 ‐15.7 ‐6.7 ‐6.8 ‐11.0 ‐8.2 ‐1.6 ‐8.9 4.4 0.8 0.0 ‐15.2 ‐10.8 0.3 United States Alabama Anniston‐Oxford Auburn‐Opelika Birmingham‐Hoover Decatur Dothan Florence‐Muscle Shoals Gadsden Huntsville Mobile Montgomery Tuscaloosa Source: Federal Housing Finance Agency. Alabama Metropolitan Areas 27 downtown, an Olive Garden on Beltline Road, and a Jack’s restaurant which employs 45. In the Market Shoppes an ULTA Salon opened and a Kohl’s will open in Spring 2013. Electronic Express is moving into the former Dillards in the Decatur Mall. Garrison Investment Group, the owner of Decatur Mall, purchased The Crossings and Walmart pur‐ chased land on Sixth Avenue for a Walmart Neighborhood Market and gas station. Developments completed in 2012 and planned for the coming year will improve the quality of life in Decatur. New outdoor recreation opportunities included 5.8 miles of new walking trails, the Pickwick Belle, and the beginning stages of an outdoor amphitheater in Founders Park. The new $40 million Hartselle high school neared completion as the year closed, but had already resulted in rising home sales in the area. The Decatur Arts Center, an $8.5 million partnership of Calhoun Community College and Athens State University, opened in August. These growing amenities, plus a new $3.4 million aquatic center being built next to the Sparkman Civic Center, a planned restoration of the 112‐year‐old L&N railroad depot, the Veterans Memorial Team Bass Tourna‐ ment at Ingalls Harbor, and the Alabama Ducks Unlimited event on the Tennessee River contributed to Decatur being named No. 1 nationally among metropolitan areas with population below 200,000 by Site Selection Magazine. Population growth in the Decatur metro was below the state average, with a 0.1 percent increase and an estimated 136 new residents for the year ending July 1, 2011. A total of 59 building permits were reported for single‐family homes during the first nine months of 2012, up by 5 from the same period in 2011. There were no multi‐family units permitted through September. The number of homes sold rose by 5.2 percent for the first nine months of 2012. Despite some positive indicators, home prices in the third quarter of 2012 as measured by the FHFA House Price Index fell 1.1 percent from the previous year; prices were down 1.6 percent since the beginning of the recession in 2007. Deposits in FDIC‐insured banks also decreased with a drop of 1.8 percent during the year ending June 30, 2012. Per capita income grew 2.7 percent for 2011 to $32,071. FY2012 median family income increased by only 1.3 percent over the previous year. Decatur’s median family income of $55,900 was 101 percent of the Alabama median. At $37,630 the Decatur area’s 2011 average annual wage was 96.0 percent of the Alabama average. Dothan The slide in Dothan metro area employment moder‐ ated during 2012, as the economy continues to struggle with the effects of the recession. Nonfarm employment in October 2012 was 57,600, a drop of 200 jobs from the previous October. Job losses were Nonfarm Employment (thousands) 64 60 56 52 2002 2007 Source: U.S. Bureau of Labor Statistics. 28 Alabama Metropolitan Areas 2012 concentrated in only two sectors, wholesale and retail trade. While most other sectors were unchanged, manufacturing added 100 jobs. Positive growth is forecasted for 2013, with employment expected to in‐crease 0.3 percent. The area’s economy is expected to expand modestly; GDP growth is forecasted at 1.2 percent. The area labor force saw some indications of improve‐ ment during the year. Unemployment was down slightly to 7.5 percent in October, a decrease of 0.1 percentage points from the previous year. In contrast, the civilian labor force and total employment both contracted by 0.1 percent, to 65,300 and 60,377, respectively. The decrease in labor force participation and employment, compounded by lagging job creation are all signs the metro area needs a boost through local development. The Dothan metro area had an under‐ employment rate of 19.8 percent in 2011. Applying this rate to October 2012 employment numbers shows an estimated 11,926 underemployed. Adding the unemployed, there was an available labor pool of 16,849 for the metro area, 3.4 times the number of unemployed. Dothan’s manufacturing sector was a bright spot, adding 100 jobs during the year, with employment rising to 5,000 in October 2012. Yura Corporation, a new manufac‐ turer to the area that will supply wiring harnesses and spark plugs to Hyundai and Kia, hired 70. Multiple manufacturers in the area expanded or planned expansion, but only 25 other net jobs were added. KFH Industries added 20 jobs at its corporate headquarters and invested $2 million in addi‐ tional equipment. Pioneer Telephone Directories Corpora‐ tion added five jobs to their typesetting and telephone directory business. Panhandle Scrap & Iron, an industrial ferrous metals recycler, and Panhandle Converters, a cata‐ lytic converter recycler, both expanded but added no jobs. A significant loss of jobs occurred when Earthgrains Baking in Dothan closed their doors in May, eliminating 124 jobs. The trade, transportation, warehousing, and utilities sector, an important factor in the local economy, shed 300 jobs in the year leading up to October 2012, but still accounts for nearly 27 percent of local employment. Within this larger sector, wholesale trade lost 100 jobs during the year. New additions to the Dothan area’s warehousing and distribution cluster during 2012 included a Hornsby Tire distribution center. Distribution and warehouse facilities for Mingledorff’s Inc. are under construction. Retail trade provided 16 percent of area employment with 9,100 workers in October 2012. Though the sector lost 200 jobs during the year, several new developments took place. Main Street in Dothan was home to several new openings. Walgreen’s pharmacy opened downtown in the summer, followed by Five Guys Burgers & Fries, Bradshaw’s Jewelers, and the formal wear store Bridal Elegance & Pageant Perfect. Restaurant openings were numerous on Montgomery Highway in Dothan. The restaurants Buffalo Wild Wings, Chili’s Grill and Bar, and Momma Goldbergs all opened, along with the discount store Big Lots. Other openings around Dothan during 2012 included Chill Yogurt Café, Zaki’s Mediterranean Grill, Karma women’s clothing store, and a Chick‐fil‐A at Wiregrass Commons Mall. In other service sector developments, the Alabama College of Osteopathic Medicine in Dothan broke ground for a new facility. Its initial class of 150 students will begin in August 2013. Prospective students are being brought to Dothan for interviews; priority for admission is being given to qualified Alabama residents. The college should create 67 jobs next year and about 400 by 2030. The county should see a gain of about $800,000 in tax revenue from the college next year. Additions to area healthcare facilities in 2012 included a Wound Care Center at Flowers Hospital and completion of a $31 million Heart and Vascular Care Center at Southeast Alabama Medical Center. Houston‐Love Memorial Library broke ground for two new libraries in 2012. The projects will cost $7.5 million overall, with the city contributing $2.5 million. The rest of the funding will come from the county, the Wiregrass Foundation, Downtown Dothan Redevelopment Authority, the Convention and Visitors Bureau, and private donations. Vantage Sourcing added 200 customer associates at its Dothan call center during the past year. Service‐provider PEMCO World Air Services, an aircraft maintenance com‐ pany, had expected to rehire many previously laid off workers, assuming increased business with the military. Instead, the company filed for bankruptcy and caused a loss of 230 jobs. Finally, after much struggle, the former Country Crossings electronic bingo and entertainment venue contin‐ ues its existence only as the Center Stage Inn and RV Park. Housing market activity was lagging in the Dothan area in 2012. Total home sales through the first three quarters of the year fell 11.0 percent to 792. Construction of new units remained somewhat slow as well. There were 137 single‐ family units permitted in the metro area for the same time frame, 30 fewer than last year. Permits were issued for a total of 319 multi‐family units, up from none during the first nine months of 2011. Prices continued to fall; the FHFA House Price Index dropped 1.7 percent between October 2011 and October 2012. The decrease was the third highest among the state’s metro areas. The Dothan area’s population grew slightly faster than the state’s and totaled 146,562 in July of 2011, a 0.5 percent increase from 2010 estimates. Median family income stayed below that of the state in FY2012, growing to $51,900. Local per capita income for 2012 rose 3.2 percent to $34,654 and ranked fourth among the state’s 11 metro areas. Bank deposits increased a slight 0.3 percent from 2011 to total $2.8 billion as of June 30, 2012. Florence‐Muscle Shoals The Florence‐Muscle Shoals metro area showed improvement across all of its economic indicators in 2012. The Shoals saw job gains of 700 over the 12‐month period from October 2011 to October 2012. Total nonfarm employment of 56,100 in October was up 1.3 percent compared to October 2011. The manufacturing sector expanded by 200 in 2012, one of seven metro areas to post such growth. On the service providing side, retail trade businesses added 200 jobs. 57 Education and health 55 services gained 100, while financial activity, 53 professional and business services, other services, 51 2002 2007 2012 and state and local Source: U.S. Bureau of Labor Statistics. government expanded by 100 jobs each since October 2011. Forecasts for the metro’s employment over the coming year are positive, with the expectation of a 1.3 percent gain. GDP forecasts are also encouraging, with output growth of 2.1 percent expected during 2013. Total employment of Shoals area residents increased by 739 between October 2011 and October 2012, for a 1.1 percent gain that was above the state’s 0.3 percent. Only about 390 workers entered the labor force during the year, a 0.5 percent increase that was still among the top five metros. Unemployment dropped 0.5 percentage points from the previous year to 7.3 percent in October 2012. With nearly 10,000 more employed residents than jobs, the area continues to be a net exporter of workers. The Florence‐Muscle Shoals area had an underemployment rate of 14.1 percent, according to a 2011 CBER survey, the lowest of the state’s metros. This means there were an estimated 9,303 underemployed workers in October 2012, added to 5,185 unemployed, for an estimated available labor pool of 14,488 in the metro area, 2.8 times the number of unemployed. Manufacturing contributed a 14.1 percent share of area jobs in October 2012, above the state average of 13.0 percent. Some big commitments were made to the metro area this year. After Navistar took over the plant in Barton Riverfront Industrial Park on the first of the year, it began gearing up to produce a newly created work truck at the Colbert County plant. However, full production of the International LoadStar truck was delayed, although fabrication operations continued, pending resolution of truck engine issues. Wise Metals Group opened a new facility in Muscle Shoals. The beverage can maker added around 45 employees in the beginning of 2012, then another 50 late in the summer. As the year closed, the United Steelworkers at Wise Alloys approved a five‐year labor agreement with base pay at $22 per hour. Firestone Building Products also announced the addition of 40 jobs at its Tuscumbia plant as part of a $40 million expansion. Local economic development entities made way for the possibility of new jobs and industries in the area through incentives and regional planning practices. The Shoals Industrial Development Committee approved a program that would offer $1,500 to companies for each new hire; the board also made moves toward purchasing $7.6 million worth of available land in public industrial parks to ease negotiations for new industries. 2012 closed with the Florence-Muscle Shoals Nonfarm Employment (thousands) Alabama Metropolitan Areas 29 biggest announcement of the year for the area. Japan‐ based TASUS Corporation, an automotive plastic component firm, began construction on a $19 million facility in Florence which will create 135 jobs. The services sector accounted for 36.5 percent of area jobs in October 2012, as area hospitals moved forward with developments. Private RegionalCare Hospital partners secured 25 acres for purchase in east Florence, with plans to build a 300‐bed replacement hospital for Eliza Coffee Memorial. However, several publicly‐owned hospitals are opposing the project, which is contingent on receiving a Certificate of Need. Nearby Shoals Hospital will be bringing up to 125 jobs as Priority Ambulance Service begins pro‐ viding their services to the hospital. Other service sector improvements came in varied forms. Walgreens announced an expansion that will bring 350 jobs to the customer care center in Muscle Shoals. A new senior center was com‐ pleted in Muscle Shoals over the summer and the Cypress Creek water treatment plant was chosen for a $15.2 million upgrade to its aging equipment. The Florence‐Lauderdale Tourism board chose the former golf pro shop in McFarland Park as the location for a new visitor center and tourism bureau. One of the ways Florence‐Muscle Shoals hopes tourism dollars will come into the area is through the new commuter air carrier, Silver Airways, which had its inaugural flight in the fall. The air service will fly 12 nonstop flights per week to the Hartsfield‐Jackson Atlanta International Airport on a 34‐seat turboprop aircraft. The area’s retail sector had its ups and downs throughout the year. There were numerous openings and new development happening in the area. Books‐A‐Million opened a new location in Renaissance City Center, downtown Florence got a new sushi bar, and Alabama Outdoors and Publix Super Market opened. Grogan Jewelers moved forward on a new store on Cox Creek Parkway, and the outdoors specialty store, Gander Mountain, opened a 45,000‐square‐foot store next to Kohl’s in the fall. Construction began in Florence on a new Walmart Neighborhood Market. There were also several closings in the area. O’Charley’s, Smokehouse Billiards, Demo’s Italian Restaurant, and Crocodile Ed’s Grill & Fish market all closed this year. Population growth in the metro area was a modest 0.1 percent for the year ending July 1, 2011, with an estimated 75 new residents. Area colleges were active; the University of North Alabama (UNA) added a Center for Integrative Health to give students the opportunity to study holistic health care while they obtain a master’s degree in health and human performance. The University’s Department of Entertainment Industry moved into NoiseBlock Studio in downtown Florence and will use the building for classroom space, offices, and a live performance venue. The construction of a new student commons and academic center began in 2012 and will feature student services, a bookstore, and eateries on UNA’s campus. Deposits in FDIC‐insured institutions in the Florence‐ Muscle Shoals metro grew by 2.9 percent during the year 30 Alabama Metropolitan Areas ending June 30, 2012. Per capita personal income growth of 3.1 percent during 2011 was positive but still lower than the state’s average gain of 3.5 percent. Median family income increased by 1.3 percent to $53,700 in 2012. However, the 2011 average wage across all industries of $34,320 was the still the second lowest among the 11 metros at 87.6 percent of the state average. Residential real estate in 2012 was moderately positive for the metro area. Single‐family building permit activity grew by 15 units through October compared to the same period in 2011 to total 118 single‐family home permits. Permits for multi‐family homes increased by 174, up from zero in the first nine months of 2011. As measured by the FHFA House Price Index, Florence‐Muscle Shoals outdid the state’s drop of 0.5 percent, with an increase of 1.1 percent in home prices in the first nine months of the year, ranking first among the state’s metros. Gadsden Nonfarm jobs in Gadsden remained flat between October 2011 and October 39 2012, compared to the 38 statewide increase of 0.7 37 percent. Goods producing industries lost 100 jobs in 36 the natural resources, 35 mining, and construction 2002 2007 2012 sector, but gained 100 in Source: U.S. Bureau of Labor Statistics. manufacturing. Retail trade and professional and business services added a total of 300 jobs, while education and health services, federal government, and other services were responsible for a loss of 300. All other sectors were flat. The employment forecast for the Gadsden metro over the coming year is positive, with the expectation of 0.3 percent growth. GDP forecasts are also encouraging, with output growth of 1.1 percent anticipated during 2012. With a total of 42,048 Gadsden area residents employed in October 2012 versus 35,800 nonfarm jobs located in Etowah County, the metro is a net exporter of workers. Total employment was up by 0.2 percent for the preceding 12 months. The labor force expanded by 141 people, keeping unemployment flat at 8.5 percent in October 2012. The Gadsden metro area had an under‐ employment rate of 22.7 percent in 2011, according to a CBER survey. Applying this rate to October 2012 labor force data, there were an estimated 9,588 underemployed workers and 3,913 unemployed residents for an available labor pool of 13,471 in the metro area, 3.4 times the number of unemployed. Manufacturing contributed 14.5 percent of area jobs in October 2012, 1.5 percentage points above the state average. Goodyear Tire and Rubber Co.’s Gadsden plant received praise when it was named one of 14 finalists in the large manufacturer division for the 2012 Manufacturer of the Year award by the Business Council of Alabama and the Nonfarm Employment (thousands) Alabama Technology Network. The plant’s employment has increased to about 1,700 from 1,400 in 2007. Ten jobs were added in 2012 when Gadsden Fabrication invested $550,000 into new markets. Decatur Plastics Products started an expansion that will result in 25 to 50 additional jobs. The services sector remained steady from the previous year, with a few new developments. The Halifax Group, which owns The Gadsden Times expanded its reach when it purchased Freedom Communications properties in Florida and North Carolina. Area health care saw improvements this year with Gadsden Regional Medical Center acquiring Outpatient Open MRI, now called Gadsden Regional Imaging, and Riverview Regional Medical Center’s Sleep Disorders Center being granted reaccreditation. Area clinics received 12 new hemodialysis stations for more convenient treatment. Public services made some equipment improve‐ ments throughout the year. Rainbow City Police Department obtained three Humvees from the Alabama National Guard along with their acquisition of a LifeSaver helicopter ambulance. East Gadsden’s Fire Station No. 9 upgraded to a new ladder truck in April. The Etowah County Commission added to their assets when they purchased the 82 acres of land adjacent to their industrial park property at Little Canoe Creek. Local public services lost 34 employees to retirement. In a cost‐saving move, the federal government decided to close Gadsden’s federal courthouse. Several small businesses in the area received honors during 2012. Advanced Imaging of Gadsden was named Small Business of the Year with 25 or fewer employees and Devan Lowe Cadillac GMC Lincoln received the same award for businesses with 25 to 50 employees. Retail employment saw a gain of 100 jobs for the 12 months ending in October as retail developments surged in the area, though the leisure and hospitality sector remained flat for the year despite local activity. It was all openings this year across the retail markets. Eatery options increased with a new Jack’s in East Gadsden, a Super Hibachi Buffet and Grill, Dale’s BBQ in Attalla, Sky’s Warehouse restaurant, Deorio’s Pizzeria, and a new scenic location for the Fish Market Restaurant overlooking the Coosa River. Other openings included Gadsden Pickers‐‐a home accessories store, Amanda’s Pool Supply, Uptown Antiques in downtown Attalla, and a Dollar General Plus in Sardis City. Farmers markets in Gadsden, Attalla, Glencoe, and Rainbow City all offered residents fresh produce and local wares through the warmer months of 2012. Area recreation was emphasized in 2012 with efforts focused on the unique aspects of the county. Local events included Attalla’s Black History Celebration in February, along with First Saturdays throughout the summer. Other highlights of the year were the beer garden at Gadsden’s Riverfest, Glencoe’s 10th Annual Celebration in the Park, and the 29th annual Noccalula Road Run which enticed thousands to the region. Construction began on the Patriots Museum at Ola Lee Mize Patriots Park, and the new Glencoe Public Library opened for business. Gadsden State Community College made strides towards alleviating traffic by embarking on a $1.5 million gateway project that will connect the East Broad and Wallace Drive campuses. The East Broad campus is also creating outdoor study spaces with outdoor furniture and new landscaping by way of a $10,000 grant from Home Depot. Population in the Gadsden metro area declined by 0.1 percent for the 12‐month period ending in July 2011 to an estimated 104,303 residents. New residential construction picked up during the first nine months of 2012 compared to 2011. The 47 single‐family units permitted were up 20 from the same period in 2011; no multi‐family units were permitted. A total of 566 homes were sold through October 2012, a rise of 7.4 percent from the same period in 2011. Home prices were flat for the year, with the area’s FHFA House Price Index posting no change in the third quarter of 2012 from a year earlier. Gadsden saw a sharp decline in bank deposits for the year ending June 30, 2012; total deposits in FDIC‐insured institutions dropped 9.7 percent, the largest percent change compared to all other metro areas in the state. However, a positive gain of 1.5 percent from FY2011 pushed median family income to $47,600. An annual increase of 2.9 percent raised 2011 per capita income to $31,844, ranking ninth among the metros. At $33,330 Gadsden’s average annual wage for all industries in 2011 amounted to 85.1 percent of the state average. Huntsville Despite a cloud of uncertainty concerning cutbacks in U.S. defense 210 spending and NASA 200 funding during 2012, the Huntsville metro saw 190 numerous developments in its defense and aero‐ 180 space research and de‐ 2002 2007 2012 Source: U.S. Bureau of Labor Statistics. velopment and support clusters. Firms opened new offices in the area to support the many military installations now at Redstone Arsenal and the ongoing initiatives at NASA’s Marshall Space Flight Center (MSFC). Although some existing companies added employees, a cautious attitude in the business community generally restrained job growth and investment during the year. Business optimism in the Huntsville area, measured by the Center for Business and Economic Research (CBER)’s Alabama Business Confidence Index™ (ABCI) was below that of the state and other major metro areas during all four quarters of 2012. Gloominess about prospects for the national economy clearly dampened the confidence of Huntsville business executives throughout the year. The weakest area ABCI reading for 2012 was 44.3 on the fourth quarter survey, when respondents expected sales, profits, Nonfarm Employment (thousands) Alabama Metropolitan Areas 31 hiring, and capital spending all to trend lower than in the previous quarter. The Huntsville area’s economy was resilient—nonfarm employment grew by 4,300 between January and October 2012 to total 207,300. However, job growth over the 12 months ending in October was a more muted 400 positions and the metro still needs to add 7,200 jobs to bring nonfarm employment up to the 214,500 seen in October 2008. Most of the net job gains since October 2011 were in service industries, particularly professional and business services which added 1,500 workers through October 2012, including 900 at professional, scientific, and technical services firms. Education and health services and the leisure and hospitality industry each added 400 jobs, while businesses in the other services category created 200. Job losses were concen‐ trated in manufacturing (1,100), particularly computer and electronic products which shed 700, and retail trade (600). Federal government employment declined by only 100 during the 12 months. Total employment of Huntsville metro area residents rose to 199,055 in October, with the addition of almost 1,250 workers amounting to a 0.6 percent increase. Since the civilian labor force expanded by only about 300, the unemployment rate fell from 7.1 percent in October 2011 to 6.7 percent in October 2012, tied for lowest among the state’s 11 metros. A CBER survey found 24.8 percent of area workers to be underemployed in 2011. Applying this to October 2012 labor force data indicates that an estimated 49,411 Huntsville workers were underemployed. Adding in the 14,219 unemployed in October, the area’s available labor pool was around 63,630 residents—a sizeable number of potential employees for new and expanding businesses. CBER forecasts have nonfarm employment in the Huntsville metro growing by 0.8 percent in 2013 with area GDP increasing 2.2 percent. Recognizing the unique economic strengths of the area, fDi picked Huntsville as its #5 top North American Small City of the Future for 2012. At 20,800 manufacturing employment in the Huntsville metro accounted for 10.0 percent of nonfarm jobs in October; below the statewide average of 13.0 percent. Among major developments during 2012, Carpenter Technology broke ground on its $500 million specialty alloys manufacturing facility in Limestone County. The plant could employ around 200 when complete late in 2014. Another new industry in Limestone County, aviation parts producer Advanced Technical Manufacturing, planned to invest almost $1 million and hire 35. Existing manufacturers Steelcase and Federal Mogul added jobs, while Electricfil undertook a $9.2 million expansion that will create about 200 jobs. And plans moved forward during the year for a $32 million oil re‐refining operation by Alabama Green Lubricants LLC. While the large industrial site near Tanner considered by Volkswagen no longer has TVA megasite status, Huntsville area development officials have been working toward having the 1,500‐acre Sewell farm in Limestone County declared a megasite. 32 Alabama Metropolitan Areas Major developments in Madison County’s manufac‐ turing industry in 2012 included an $80 million expansion for V6 engine production by Toyota Motor Manufacturing Alabama that will create 125 jobs. Raytheon’s over $75 million Missile Integration Facility and Test facility on Redstone Arsenal opened in late November. The company saw several successful tests of the Standard Missile‐3 (SM‐3) Block 1B interceptor and was awarded a $925 million con‐ tract by the Missile Defense Agency (MDA) for the SM‐3 Block IIA missile as well as a $230 million contract for several versions of the SM‐3; these and the SM‐6 will be produced in Huntsville. The first missiles from the plant are expected to be delivered early in 2013. Futaba Corp.’s $8.7 million expansion of its electronic circuit assembly plant will create 40 jobs. However, local soft drink producer Big Springs discontinued production in late summer, idling 87. But the sale of DVD manufacturer Cinram to a private in‐ vestment firm should help preserve 1,600 jobs. According to Graham & Company, industrial vacancies in the Huntsville market area rose to 12.3 percent in 2011 with several large buildings for sale, including the former Continental Automotive plant. Although all BRAC‐mandated moves to Redstone Arsenal were completed in 2011, development at the base continued during 2012. The new Redstone Tactical Test Center was completed during the year. Ground was broken in mid‐2012 for the FBI’s Terrorist Explosive Devices Analytical Center that will be moving from Quantico, Virginia to join other antiterrorism agencies at Redstone. The former home of the 59th Ordnance Brigade and School is being repurposed as the Logistics Support Activity Lead Army Materiel Command Integration Support Office. Currently under construction, the $59 million fourth wing of the Von Braun IV complex will house about 850 MDA employees when it opens in the fall of 2014. Huntsville’s Cummings Research Park, now the nation’s second largest, turned 50 in 2012. Area professional, scien‐ tific, and technical services businesses managed to add a modest number of jobs during the 12 months ending in October 2012, despite uncertainty about federal budgets and potential defense spending cuts that remained unresolved until yearend. Foreign military sales, which included more than $17 billion in orders for missiles through 2015, are helping companies continue research and development activities. Large aerospace and defense contractors with offices in Huntsville saw a number of contract awards for new and continuing projects. Boeing, which celebrated 50 years in Huntsville, continues to develop and sustain the Ground‐based Midcourse Defense (GMD) System with its Northrop Grumman partner follow‐ ing a $3.48 billion contract award at the close of 2011. Other Boeing contracts during 2012 with work in Huntsville included a renewed agreement for work on Israel’s Arrow missile defense system; as well as research and develop‐ ment in competition with SpaceX, Sierra Nevada, and Blue Origin to lead NASA’s commercial space taxi project. Boeing will relocate its Huntsville workforce to the first three buildings in the new Redstone Gateway, moving into the first building by Spring 2013 and into the next two early in 2014. Lockheed Martin, which added 100 jobs with the concentration of its Targets and Countermeasures division in North Alabama and relocation of a development lab from Denver, received a contract for the Extended Technology Development Phase of the Joint Air‐to‐Ground Missile. Further workforce additions are possible pending successful competition for MDA’s Medium Range Ballistic Missile Targets contract. However, a potential decision by the United States not to complete their obligation to the Medium Extended Air Defense System (MEADS) could impact Lockheed Martin employees in Huntsville. Northrop Grumman received a $122 million contract as part of the Counter‐Rocket Artillery and Mortar (C‐RAM) project run through Redstone Arsenal. The Dynetics Solutions Complex that opened in the spring increases the Huntsville‐based company’s capabilities for research, development, and production for aerospace, cyber, and defense products as well as high‐tech protyping, including work on the Stratolaunch aircraft launch system. Dynetics also unveiled its new airport surveillance sensor and plans to add 250 to 300 jobs through 2014. Huntsville’s Torch Technologies was awarded a Navy SeaPort Enhanced prime contract valued at over $48 billion and five compete‐ tive task orders for $46.7 million under the Missile Defense Agency’s Engineering and Support Services. An Army Sustainment Command EAGLE agreement with LogiCore offers a task order valued at up to $23 billion for logistics, materials maintenance, supply services, and transportation support services. Other defense‐related awards to local firms included a $300 million Air Force cyber security contract with Radiance Technologies, Qualis’ receipt of part of a $77 million five‐year contract for services with the Air Force operational test and evaluation center, and a contract of up to $120 million for radar testing by deciBel Research. Johnson Controls BAS is part of a 10‐contractor team sharing a $375 million contract for security and control systems; a $31 million contract will support Aegis Technologies’ upgrade of helicopter simulators at Fort Campbell, KY. NASA and its Marshall Space Flight Center continue to work on the next generation of space flight. A basically flat budget was good news as the agency moved ahead on projects including a new space launch system, partnerships with commercial space companies, and a strategy to explore MARS. Connections between Huntsville’s defense and aerospace research initiatives are exemplified by the Space and Missile Defense Command and the growing needs of a smaller Army for space and cyberspace capabilities. As it moves into new frontiers, NASA was taking proposals for up to $200 million for research on reducing the risks associated with new heavy‐lift rocket boosters. During 2012 the Space Launch System program was approved to move to the preliminary design phase—ATK will work on testing parts of the system at MSFC under a $50 million contract award, Population United States Alabama Anniston‐Oxford Auburn‐Opelika Birmingham‐Hoover Decatur Dothan Florence‐Muscle Shoals Gadsden Huntsville Mobile Montgomery Tuscaloosa 7/1/2011 311,591,917 4,802,740 117,797 143,468 1,132,264 154,070 146,562 147,293 104,303 425,480 412,577 378,608 221,553 2010 to 2011 Number Percent Change Change 2,261,698 17,339 ‐629 2,684 3,196 136 657 75 ‐137 6,100 ‐539 3,405 1,814 0.7 0.4 ‐0.5 1.9 0.3 0.1 0.5 0.1 ‐0.1 1.5 ‐0.1 0.9 0.8 Source: U.S. Census Bureau. while Dynetics’ $73.3 million award involves testing for the F‐1 rocket engine. United Launch Alliance (ULA) moved closer to having its Atlas V rocket qualified to transport astronauts –both Boeing and Sierra Nevada are proposing to use the Atlas V as the launch vehicle for crew‐carrying. Huntsville’s Teledyne Brown Engineering received a cooperative agreement for work with NASA on growing commercial utilization of the International Space Station and to provide a commercial imaging system onboard. Companies new to the Huntsville area during 2012 included Sierra Nevada, which provides services to NASA, the Army, and the Space and Missile Defense Command, and is vying to provide space taxis for astronauts to the International Space Station. The emphasis of USfalcon’s Huntsville office will be work on a Missile Defense Data Center contract, while Intelligent Decisions is now positioned in Huntsville to better serve defense needs for technology systems integration. Cleveland‐based Alphaport opened an engineering services office; EnGenius Consulting Group moved its corporate headquarters from Atlanta; GeoCent will create about 100 jobs with the establishment of its Engineering Service Sector in Huntsville; and LMI, which purchased local company Belzon, is setting up headquarters for its new Southeast region. Other companies moved or expanded. AAI and Bell Helicopter opened the Textron Systems Integration and Collaboration Lab, Systems Products and Solutions moved into a new headquarters, MJLM added a new site in Jetplex Industrial Park, and Krotos Defense and Security Solutions opened its second building in Cummings Research Park. Also during 2012, Science and Engineering Services (SES) expanded into a new hangar facility at the Huntsville airport, while SAIC opened a facility in Alabama Robotics and Technology Park. Both Sentar and PPT Solutions announced expansion plans during the year. Among area companies planning new facilities, Integraph will build a $58 million headquarters on its current campus and Wyle’s CAS Group is working on an $18.7 million building in Cummings. Alabama Metropolitan Areas 33 A growing biotech research and development cluster is helping diversify the defense‐ and aerospace‐heavy focus of research and development in the Huntsville area. The HudsonAlpha Institute for Biotechnology broke ground on its third building in a continuing partnership with the state of Alabama as it expands to keep up with interested new companies. Companies moving into the Institute during 2012 included Transomic, providing next‐generation genetic tools; and Kirchner Food Security Group and Kirchner Private Capital Group, using genetics in agricultural research. Other areas of emphasis in the Huntsville area include cyber security, clean energy, geospatial technology, robotics, and the contract management and logistics focuses of the Army Materiel Command. The University of Alabama in Huntsville (UAH) was re‐designated as a national center of information systems security education, in partnership with the National Security Agency and the Department of Homeland Security. And Geo Huntsville is encouraging cooperation among around 50 private companies, 15 government agencies, and three local universities involved in geospatial work. Healthcare options expanded with the opening of the $71 million Madison Hospital in the first quarter of 2012; the hospital provides 60 beds and employs more than 300. The new hospital is managed by nonprofit Huntsville Hospital which expanded its reach in North Alabama, assuming management of Lawrence Medical Center and Decatur General Hospital. A three‐story medical office tower was completed in Madison late in the year. Athens‐ Limestone Hospital, also under Huntsville Hospital manage‐ ment, completed emergency room renovations and will begin work on a $9.3 million 40‐bed long‐term acute care hospital. An expansion of UAB’s medical residency program with Huntsville Hospital will add 24 residents in internal medicine, further helping address the shortage of primary care physicians in North Alabama. In other services‐related activity during 2012, Huntsville International Airport completed a $92 million expansion project with the opening of a new baggage claim area in late November. But service from AirTran Airways ended in August and the airport continues to seek another low‐cost carrier. Air cargo was up 32 percent in 2011 as Panalpina added to its U.S. freight network that operates out of Huntsville. Lodging options in the area grew with the opening of Holiday Inn Express and Suites in Madison and SpringHill Suites by Marriott in the Village of Providence. The Four Points by Sheraton Huntsville Airport and Radisson Huntsville Airport underwent renovations, while the Radisson Suites Hotel on South Memorial Parkway is being redeveloped as a DoubleTree Suites by Hilton. Fairfield Inn and Suites in Athens and Home 2 Suites by Hilton and Hampton Inn and Suites near Bridge Street Town Centre are slated to open this year. Bank deposits in the Huntsville metro totaled $6.6 billion in June 30, 2012, down 3.3 percent from a year earlier. Although employment fell, there were numerous developments in the Huntsville metro area retail sector 34 Alabama Metropolitan Areas during 2012. Graham & Company reported a retail vacancy rate of 9.9 percent at the end of 2011, down from 10.8 percent in 2010; several projects completed in 2012 are contributing new space and taking up some of the old. The Shoppes of Madison opened in March with Target, AT&T, Petco, Ross, Dollar Tree, Kinnucan’s, Maurice’s, Rack Room Shoes, Kay Jewelers, and a number of service businesses and restaurants. Construction was underway on Medical Park Station near Madison Hospital, a retail and medical office development, including as tenants Taziki’s Mediter‐ ranean Café, Sprint, and Mattress Firm. A Dunkin Donuts also opened in Madison. Huntsville’s Bridge Street Town Centre added Panera Bread; Bed, Bath & Beyond; and H&M during the past year. Other additions included Brookstone, Mattress Firm, and Bar Louie; a planned expansion will create space for Belk and other retail stores and restaurants. The North Memo‐ rial Parkway area added a Dunkin Donuts, Five Guys Burgers & Fries, and Mapco Mart, while Oakwood Village gained Improv Entertainment & Restaurant and a Roses store. A Walmart opened in the new Colonial Promenade on U.S. 72 in the fall, hiring 300; additional retail and restaurants are slated to open there in 2013. The former Barnes and Noble space on University Drive was repurposed as a HomeGoods store. Other restaurant additions included Zoe’s Kitchen and Shane’s Rib Shack in the Village at Whitesburg, Chipotle Mexican Grill on University Drive, and Texas Roadhouse on U.S. 72. BRAC relocations coupled with new and expanding professional, scientific, and technical service firms helped draw 6,100 new residents to the Huntsville metro during 2011, boosting population 1.5 percent to 425,480. Home sales picked up in 2012, climbing 11.4 percent to 4,737 for the first 10 months of the year compared to the same period in 2011. Prices in third quarter 2012 were up a slight 0.2 percent over the third quarter of 2011, with the FHFA House Price Index level with its prerecession reading. The almost 1,600 single‐family building permits issued during the first nine months of the year was about the same as in 2011. However, multi‐family housing activity picked up from just a few units in the first three quarters of 2011 to 312 units permitted in 2012. In single‐family housing, Huntsville’s Village of Providence will add 460 homes. Madison annexed land for the 53‐home Belmont Place subdivision, while the 35‐lot Greenway Park in southeast Huntsville was approved. Subdivisions under construction in the Limestone County portion of Huntsville included Olde Cobblestone, Westlake, and The Preserve at Limestone Creek. Apartment development surged in 2012 with 4,033 apartments completed, in progress, planned, or under consideration during the year. A Rock Apartment Advisors survey estimated area occupancy at 92.9 percent in June. Eagles Landing put 64 new units on the market in 2012, while the Belk‐Hudson Lofts offered 75 units in downtown Huntsville, and the first of 226 units in Providence Place were completed. Most apartments under construction during the year will be available in 2013 including 136 units at Emerald Ridge, the first 36 units of 528 planned at Limestone Creek, and Phase I of the 228‐unit Addison Park. There were several developments completed or under construction for residents 55 and older including 60 apartments at French Farm Villas in Athens, 54 at The Commons, and 56 in Franklin Hills. A $100 million public/private redevelopment of the former Councill Courts public housing site near Huntsville Hospital as Twickenham Square will include 246 apartments, a Publix supermarket and other retail, a Homewood Suites by Hilton, a five‐story office tower, and a 920‐space parking garage. After sustaining serious damage from the April 2011 tornadoes, the Huntsville metro area was hit by storms and tornadoes again in March 2012, with almost 130 homes in Limestone and Madison counties destroyed or heavily damaged. In quality of life developments, Madison’s new James Clemens High School opened in the fall; the downtown Madison area saw streetscaping, additional parking, and the first new building in recent years. A new study on Huntsville’s young professionals completed during 2012 provides the city with a basis for decisions about downtown development and housing, transportation, assistance for start‐up entrepreneurs, and other initiatives that will attract the needed workforce. Kiplinger’s Personal Finance named Huntsville #3 Best Cities for Professionals in its 2012 rankings, while Forbes chose Huntsville as one of the world’s 10 smartest cities. New facilities were added in Huntsville’s Burritt Museum, Veterans Park, and the Botanical Gardens, and the city moved forward with plans for John Hunt Park. Fire stations opened in Huntsville and Madison during the year. The Huntsville area ranked first among the state’s 11 metros with a 2011 average annual wage of $49,070 and FY2012 median family income of $71,700; per capita income of $40,126 in 2011 ranked second. was the largest of the state’s 11 metros. A slightly smaller increase of about 1,950 in the labor force helped bring the area’s unemployment down from 9.5 percent to 8.7 percent in October 2012. An estimated 29.9 percent of Mobile area workers were underemployed in 2011, according to a Center for Business and Economic Research (CBER) survey, highest among the metro areas. Applying this rate to October 2012 labor force data, Mobile had an estimated 52,908 underemployed workers which, combined with 16,884 residents who were unemployed in October, shows an available labor pool of around 69,800—an encouraging number of potential workers for businesses that are new to the area or expanding. Mobile area business optimism, measured by CBER’s Alabama Business Confidence Index™ (ABCI) was below the state average throughout the first three quarters of 2012, with sentiment in the first and third quarters indicating a slowdown in local economic activity. Area confidence got a clear boost from the Airbus announcement, however, with the fourth quarter 2012 Mobile ABCI at 51.0, 2.7 points above the reading statewide. Despite pessimism about the U.S. economy, Mobile business executives were optimistic about prospects for the state and their industry in the fourth quarter. CBER forecasts relatively strong employ‐ ment growth of 1.3 percent for the Mobile area in 2013, with GDP increasing 2.0 percent. Although the future looks bright for Mobile’s manufac‐ turing industry, the sector as a whole shed 300 jobs during the past year. Job growth late in 2012 and in 2013 is likely to be driven by the area’s shipbuilders. Austal USA, Mobile’s largest industrial employer with around 3,000 workers late in 2012, plans to hire at least 1,000 during the next 12 to 18 months to fulfill its government contract obligations and other project work; employment could rise to 4,600 by 2016. Mobile’s Maritime Training Center is an important resource for workforce development for area shipbuilders and related industries—half of the facility is Mobile dedicated to Austal and the other half is used generally Ships, airplanes, and steel by Alabama Industrial Development Training. Fifteen Nonfarm Employment dominated development (thousands) employees graduated from Austal’s four‐year apprentice‐ news in the Mobile metro 185 ship program in August. During 2012 the company com‐ during 2012. Total non‐ 180 pleted Phase 2 of its Module Manufacturing Facility office farm employment climbed complex and fifth assembly bay, a $200 million project, as 175 by 4,000 between January well as the $5 million Navy Administration Building that and October 2012 to 170 provides office space for Navy and other government reach 177,000. There 165 workers at the shipyard. were 2,200 more jobs in 2002 2007 2012 Austal, teamed with General Dynamics Advanced Source: U.S. Bureau of Labor Statistics. the area in October 2012 Information Systems, is currently under contract with the than there were a year U.S. Navy for 10 JHSVs under a $1.6 billion contract and for earlier, however, 8,000 more are needed to bring employ‐ five LCS, four of which are under a 10‐ship, $3.5 billion ment back up to its level five years ago. Most of the jobs contract. Planned defense spending cuts would reduce the added during the 12 months ending in October came from LCS program modestly, but could end the JHSV program Mobile’s natural resources, mining, and construction as well after the first 10 Austal‐built ships. The company’s second as transportation and warehousing, financial activity, LCS, the USS Coronado, was christened early in 2012 and healthcare, and leisure and hospitality businesses. completed systems and engine tests, with delivery planned The number of employed Mobile residents climbed by for early in 2013. Construction is also underway on the USS 3,320 during the same period, for a 1.9 percent gain that Jackson, to be delivered in 2014, with the USS Montgomery Alabama Metropolitan Areas 35 in preproduction; a subsequent LCS will be named the USS Gabrielle Giffords. An important milestone was reached in the JHSV program with the December delivery of the first ship, the USNS Spearhead, to the U.S. Navy, completing a project that began in December 2009. Construction is underway on the second and third JHSV, with the USNS Choctaw County scheduled for delivery to the Navy in 2013. Mobile’s BAE Systems Southeast Shipyards also saw strong business growth during 2012. Working with Austal, the company finished repair and maintenance of the Sea Fighter U.S. Navy research vessel. BAE launched the chemical tanker, American Phoenix, built with Mid‐Ocean Tanker Company, in June and began construction of the MV Magdalen, a trailing suction hopper dredge for Weeks Marine that is slated for completion in 2014. A mid‐2012 contract with Great Lakes Dredge and Dock for two dump scows was followed by a contract with GulfMark Americas for two platform supply vessels. Employment at BAE, which stood at around 650 early in 2012, was up to 830 in Sep‐ tember, with plans to hire 125 by year‐end; the company expects strong employment growth in 2013. Several ship‐ builders worked on projects for the U.S. Army Corps of Engineers—Signal International was adding about 100 employees for work on a $15.9 million contract to repair a hopper dredge, while Bayou La Batre’s Horizon Shipbuilding completed an inland river tug. Looking out a few years, Mobile’s burgeoning aerospace industry will be a major contributor to manufacturing job growth. With Airbus’ July 2nd announcement of a $600 million aircraft manufacturing plant that will employ 1,000, Mobile finally reaped the benefits of the groundwork which was laid several years earlier with EADS in pursuit of the Air Force refueling tanker contract. Airbus officials cite Mobile’s deepwater port in close proximity to the airport and other infrastructure as key factors in their decision. The facility will be built at Brookley Aeroplex, which is already home to about 200 Airbus employees at an aircraft engineering center. Groundbreaking for the plant is tenta‐ tively scheduled for April 2013, with construction contracts awarded early in the summer; construction employment could reach 3,600. Assembly of the A320 aircraft family will get underway in 2015, with the first planes delivered in 2016; production should be up to 40 to 50 aircraft per year by 2018, or around 4 planes a month. Airbus’ employment ad for a Director of Human Resources was posted in Novem‐ ber; AIDT is partnering in a dedicated, but not exclusive, Airbus training facility and a tailored curriculum at Brookley. Of course, the aviation and aerospace industry is not new to Mobile and the Gulf Coast; the I‐10 aerospace corridor, stretching from New Orleans to Panama City, was the third highest area in the U.S. in 2010 aerospace and defense revenues. Brookley Aeroplex houses ST Aerospace Mobile, one of the area’s largest manufacturing companies with about 1,500 employees and aircraft mechanics and avionics training is offered at Brookley’s Alabama Aviation Center. With the Airbus plant a certainty, local and state development officials have been busy courting potential 36 Alabama Metropolitan Areas suppliers at events like the ILA Berlin Air Show and the 2012 Aviation forum in Hamburg. However, supply chains in the aerospace sector are more dispersed than in the auto industry and develop more slowly, so the immediate supplier impact will likely be smaller; there could be an estimated 2,000 indirect jobs created by 2016. Indications are that about four to six integral service providers would locate on the Airbus site at Brookley, with other critical suppliers also at Brookley, but not on the site. A ring of suppliers within around 100 miles is likely, as warehousing may not be available onsite. An outer band of companies supplying the suppliers could fall within a 100 to 300 mile radius. The numbers of suppliers should continue to grow as the plant’s rate of production increases from around four planes per month to eight planes at full capacity. Airbus, which already has an existing supplier base and operational models from other U.S. facilities, including EADS subsidiary American Eurocopter in Columbus, Mississippi, is sensitive to concerns among existing aerospace firms in the Mobile area that they will lose their trained workers to higher paying jobs. The company hopes to grow the aviation workforce overall and see new opportunities created for existing companies. Wages at Airbus could average $43,700 for skilled laborers and $72,600 for management and engineers. Partnerships between existing area aerospace companies and European Tier 2 or 3 suppliers could benefit both groups. Airbus also raised the prospect of forging supplier relationships with existing auto suppliers, helping them navigate the rigorous process required to obtain aerospace supplier certification. AIDT has pledged to help companies that lose 10 or more workers to Airbus rehire. The challenge generally will be to provide enough workers with the skills needed through workforce training initiatives. Growing aerospace employment will encourage cooperative programs for aerospace education, such as the Aerospace and Aviation Academy recently implemented at B.C. Rain High School near Brookley in partnership with Enterprise‐Ozark Community College. Baldwin County is setting up an aviation education center as a partnership between Fairhope, Faulkner State and Enterprise State community colleges, and the Baldwin County EDA. The new plant will enhance the existing relation between the University of South Alabama’s College of Engineering and Airbus, providing opportunities for graduates to stay in Mobile and work in their field. Development news was mixed in Mobile’s steel producing industry during 2012. SSAB brought a close to $300 million expansion online, creating 120 new jobs with increased capacity for quenched and tempered steel. ThyssenKrupp Stainless USA opened its melt shop in December; employment stood at about 750 in the fall. A $3.5 billion divesture of the stainless unit, which was renamed Inoxum, to Finnish steelmaker Outokumpo Oyj won European Commission approval in November and was expected to close by year‐end. Citing a weak international market and cost overruns and delays at its carbon steel plants in Calvert and Rio de Janeiro, Brazil, ThyssenKrupp decided to put both plants up for sale, while maintaining ongoing operations. However, in August ThyssenKrupp eliminated 197 of the 1,653 workers at the Calvert facility. Initial offers from seven steel producers fell far short of the $9 billion book value that ThyssenKrupp hoped to recover from its $15 billion investment in the two plants and prompted a call for new offers. Several projects were undertaken to serve Thyssen‐ Krupp during 2012, including Heidtman Steel Products $18.5 million steel slitting facility onsite; Tube City IMS, with a $23 million investment providing 68 jobs in melt shop scrap services for the stainless division; and Kloeckner Metals $18 million steel processing plant that will create 32 jobs. Other Mobile area industrial developments included a $6 million investment by Aker Solutions that increased production of umbilicals and created 25 new jobs. UOP LLC, a Honeywell company, is investing in a $20 million expansion to produce absorbents and catalysts, while AMVAC Chemicals added 60 jobs in 2012, including 10 for production of a new cotton defoliant—a $9.9 million expansion at AMVAC announced in August will create 21 additional positions. Taylor‐Wharton’s new $6 million cryogenics manufacturing facility will create an initial 15 jobs. And resin manufacturer Huntsman Americas is in the midst of a $40 million expansion that will add 35 jobs. Investments by the Alabama State Port Authority continued to pay dividends in 2012 and saw the Authority turning a profit after two years in the red. Infrastructure investment of over $340 million at APM Terminals Mobile over the last several years created a 45‐foot channel and turning basin for ships as long as 1200 feet, enabling an increasing number of post‐Panamax ships to call at the facility in 2012. A new container service by Mediterranean Shipping now provides weekly direct call service to and from north European ports. Volumes of steel products handled by the Port Authority have increased substantially as ThyssenKrupp production ramps up. Coal industry export capacity at the Port of Mobile will increase this spring with completion of a $12 million upgrade of McDuffie Coal Terminal. Walter Energy’s $100 million conversion of a former steel import facility at the Port of Mobile for coal exports will create 50 jobs in conjunction with its Tuscaloosa County energy project in 2017. A $12 million U.S. Department of Transportation grant and matching funds from the Alabama State Port Authority got work started on the $31 million Phase 1 of the Garrows Bend Intermodal Container Transfer Facility that will con‐ nect containerized imports and exports from the Port of Mobile to major rail lines, creating over 300 jobs in logistics, handling, trucking, and rail work. An oil unloading terminal for Arc Terminals LP in partnership with the Canadian National Railway will begin operation in Mobile in June 2013. International Shipholding, headquartered in Mobile, undertook steps to improve its business position, including buying and selling several ships and acquiring U.S. Ocean Services LLC in a $111 million deal. Although data indicate that area tourism has com‐ pletely recovered from the April 2010 BP Deepwater Horizon oil spill, Mobile County’s coastal seafood industry is still struggling. Sales were down about 10 percent in the two years following the spill to $146 million. But before that time, hurricanes, high fuel prices, and foreign competition had already put the industry in jeopardy. Hope is resting on a $5 million marketing campaign coordinated by the Alabama Seafood Marketing Commission to promote sea‐ food from the Gulf as a healthy choice. Mobile’s former Sara Lee bakery closed in May, idling 90 workers. Mobile’s services sector added around 500 employees between October 2011 and October 2012 and accounted for 40.4 percent of area jobs. Healthcare and social assistance employment grew by 200, while leisure and hospitality businesses created 300 jobs. Although professional and business services shed 100 positions overall, Alorica’s new call center that opened in March in west Mobile hired 200 workers and the company’s Saraland location added to its workforce. Mobile continued to investigate prospects to fill the void left by the abrupt departure of Carnival Cruise Lines in October 2011 and to pay on the $22 million owed on the Alabama Cruise Terminal that was previously funded from parking revenues. The nearby $52 million GulfQuest National Maritime Museum, set to open in 2013, could help recruiting efforts. Large‐scale events such as Mardi Gras, Bay Fest, the GoDaddy.com Bowl, and the Senior Bowl provide significant tourism revenue. Mobile’s Convention and Visitor’s Bureau launched its “Mobile Bay—Secretly Awesome” campaign in the fall. Businesses in Mobile’s financial activities sector saw a net gain of around 200 jobs during the past year. However, deposits in FDIC‐insured institutions, which accounted for 7.1 percent of all deposits statewide, fell 0.9 percent during the year ending June 30, 2012. The University of South Alabama’s Mitchell Cancer Institute received a number of new NIH research grants as it strives to gain National Cancer Institute designation. A $1 million federal grant will fund students in the Department of Physician Assistant Studies, with emphasis on retraining veterans as physician assistants. Shelby Hall, housing the university’s College of Engineering and School of Computing, was dedicated in the fall. Although state government employment was flat, federal and local government entities saw employment fall slightly during the 12 months ending in October. In area retail developments, construction progressed on two Publix Supermarkets, with stores at Airport and University Boulevards and in the Hillwood Plaza set to open in summer 2013. Bel Air Mall added Versona Accessories and Maurice’s. Other retail store openings during the year included Kelsey’s Bargain Town in the Victoria Place Shopping Center, Zeal Boutique in the Schillinger Place Shopping Center, and Raven’s Nook on Airport Boulevard. Academy Sports & Outdoors will anchor the new Westgate Pavilion on Airport Boulevard; Walgreens purchased land Alabama Metropolitan Areas 37 October brings the Montgomery area’s available pool to around 49,000. That’s a sizeable number of potential employees for new and expanding business and industry prospects. Montgomery area business executives were the most optimistic about prospects for the economy and their firm or organization during all four quarters of 2012 compared to executives statewide and in other large metros. Although confidence as measured by the Center for Business and Economic Research (CBER)’s Alabama Business Confidence Index™ (ABCI) fell from 58.4 on the second quarter survey to 51.3 in the fourth quarter of 2012, area businesses expected modest growth as the year came to a close. CBER forecasts have employment in the Montgomery area rising 0.6 percent in 2013, with GDP increasing 1.7 percent. In manufacturing, where employment increased by 1,700 from January to October 2012 and accounted for 10.9 percent of nonfarm employment, the keyword was Hyundai. After striving to meet demand for the Sonata and Elantra by running two 10‐hour five‐day shifts plus Saturday overtime, Hyundai Motor Manufacturing Alabama added a third shift at its Hope Hull plant in September. The 877 new hires that came on board for training in July brought employment to more than 3,000. With the new shift, production of Sonatas and Elantras at the plant could reach 345,000 for 2012 and 360,000 in 2013. Montgomery’s other Hyundai, Hyundai Heavy Industries, which opened its plant in November 2011, added around 400 workers during 2012 as it ramped up production of power transformers. Montgomery County gained its 13th auto supplier as DAS North America started production of automotive seat components in a temporary facility with around 60 workers. The company plans to invest $50 million in a new plant that should be online by early in 2015 and employ 240. Tallassee Hyundai suppliers expanding include Hanil USA, planning a $3 million investment that will create 60 jobs, and E&I, with a $2 million investment and 20 new jobs. Commercial vehicle brake component manufacturer Fras‐le announced Montgomery an $11 million investment bringing 100 jobs to Prattville. Manufacturing and In other manufacturing developments during 2012, TK Nonfarm Employment professional and business (thousands) Electric is building a $3 million facility in Pike Road to supply services drove job growth 180 Hyundai Heavy Industries; employment should start at in the Montgomery metro around 30 when it opens in 2014. Hospital equipment 175 area during 2012. Total manufacturer Steris’ decision to invest $11 million in an nonfarm employment of expansion of its Montgomery plant preserves the company’s 170 165,600 in October 2012 current 270 jobs and will add at least 80 new positions late was 100 workers above a 165 in 2013. Dow Corning Alabama completed a $30 million 2002 2007 2012 year earlier; however, the power substation at its silicon metal manufacturing facility Source: U.S. Bureau of Labor Statistics. area still needs to create in Mt. Meigs and added 30 employees. A grant to improve 14,800 jobs to be back at road access will help Atagi Water, which began production the 180,400 prerecession level of five years ago. An in Autaugaville during the summer. increase of 624 in the number of employed residents, Firms in professional and business services employed coupled with a decline of around 230 in the civilian labor 20,600 across the Montgomery metro in October 2012, the force, brought unemployment down from 8.5 percent in area’s second largest sector with 12.4 percent of jobs. October 2011 to 8.0 percent for October 2012, ranking 8th Employment climbed by 700 during the first 10 months of lowest among the 11 metros. Adding an estimated 35,336 the year; a fall job fair aimed at connecting potential underemployed workers to the 13,679 unemployed in employees with information technology and project for a store at Spring Hill Avenue and Mobile Infirmary Boulevard; and Dollar General stores are planned for Moffett Road and Bayou La Batre. New restaurants included Pita Pit, Fuji San, and LoDa Bier Garden in down‐ town Mobile; other areas saw a mix of casual dining and dessert and yogurt shops. Housing sector indicators were mixed, with the number of homes sold up a modest 4.0 percent in 2012 compared to 2011, but single‐family home building permits for the first nine months of the year down slightly and multi‐family housing units permitted only about half the number for the same period in 2011. Average home prices in the third quarter of 2012, measured by the FHFA House Price Index, were 3.5 percent below third quarter 2011 and still 15.2 percent lower than five years earlier. Multi‐family develop‐ ment during 2012 included the Gardens at Wellington, a 51‐ apartment independent living facility; the 92‐unit Hallmark at Mobile complex; conversion of an old Army barracks in midtown added 16 units. Volume builder D.R. Horton bought lots and undeveloped acreage in Longleaf Gates in June and development could pick up with optimism surrounding the Airbus announcement and strong growth in the shipbuilding industry. 2013 will also see rebuilding activity as the cities of Mobile and Prichard recover from the tornado destruction that occurred on Christmas Day. Mobile’s historic Murphy High School, housing in the Spring Hill Avenue vicinity, and midtown Mobile’s business and medical districts were among the areas damaged. Population in the Mobile metro, which grew 3.3 percent between 2000 and 2010, fell by a slight 0.1 percent during the year ending July 1, 2011. Airbus and related companies should provide a boost to Mobile area income levels. At $39,190 in 2011, the average wage for all industries was just above the state average and ranked third among the 11 metros. But 2011 per capita income of $32,779 fell below Alabama’s $34,880 and FY2012 median family income amounted to a well below‐average $51,900. 38 Alabama Metropolitan Areas management companies suggests continuing growth. Retirement Systems of Alabama opened a $13 million Datacenter in its Dexter Avenue building in the fall. Medical supply company InMed Group added around 30 employees at its new downtown corporate head‐ quarters, while working on plans to convert a city‐owned property downtown and add 60 employees with the move. The area’s financial sector continues to rebound from the demise of Colonial Bank; FDIC‐insured deposits as of June 30, 2012 were 9.6 percent higher than a year earlier. Education and health services generally held its own in terms of employment during 2012. Montgomery Catholic Preparatory School opened a new $6.2 million elementary school in August. Faulkner University com‐ pleted a number of projects during 2012, including an addition to Jones School of Law, a men’s dorm, and extensive renovation to convert an existing building into a Dinner Theatre. The school dedicated its $2 million John Mark Stallings Field, a new football and soccer stadium, in time for fall semester use. Health services in the Montgomery area saw the loss of almost 120 jobs as the Department of Mental Health closed Greil Hospital August 31 and moved patients to community care or other state hospitals. UAB’s Montgomery regional medical school on the campus of Baptist Medical Center South will begin training residents in May 2014 and should help provide more primary care physicians to the Montgomery area and central Alabama generally. Public K‐12 schools and higher education institutions saw numerous developments over the past year. The Montgomery Public Schools started construction on the $34.1 million Park Crossing High School—its first high school on the city’s eastern side—slated to open in Fall 2013. Career prep efforts accelerated with the opening of the Montgomery Technical Education Center, offering training in carpentry, industrial maintenance, and welding to high school students in a year‐round program that includes summer apprenticeships. The school system continues to repurpose, tear down, or sell unused schools and property. Alabama State University (ASU) completed its 26,500 seat, $62 million football stadium just in time for the 2012 Turkey Day Classic game against Tuskegee University. The university dedicated the expanded Levi Watkins Learning Center, a $22 million project, in November, and continued work on a $4.2 million renovation of a downtown Mont‐ gomery building that will house the master of accountancy and other upper level College of Business programs. Reno‐ vation of a former Alabama Public Television building will provide space for ASU’s new Center for Applied Communi‐ cations Media. Auburn University at Montgomery opened a $20.6 million wellness center in the fall. The university’s new Confucius Institute will promote teaching Chinese language and culture at the public school and university level. An economic development institute being established at Troy University Montgomery will bring elected leaders and business people to the campus beginning in April 2013. Deposits in All FDIC‐Insured Institutions (Millions of Dollars) 6/30/2012 Alabama Anniston‐Oxford Auburn‐Opelika Birmingham‐Hoover Decatur Dothan Florence‐Muscle Shoals Gadsden Huntsville Mobile Montgomery Tuscaloosa Percent Change from 6/30/2011 Percent of State 0.7 2.5 5.2 1.1 ‐1.8 0.3 2.9 ‐9.7 ‐3.3 ‐0.9 9.6 2.5 100.0 1.9 2.5 34.7 2.2 3.3 2.7 1.2 7.8 7.1 9.3 3.7 84,785 1,647 2,105 29,406 1,847 2,800 2,277 1,051 6,607 5,980 7,909 3,142 Source: Federal Deposit Insurance Corporation. While state government employment declined by 5,700 across Alabama between October 2011 and October 2012, the Montgomery area saw an increase of around 200 during this time. Altogether, the metro that includes the capitol had 22,800 residents working for the state in October, amounting to 13.8 percent of total nonfarm employment. A constitutional amendment that passed in September allowing the transfer of $145.8 million per year for three years from the Alabama Trust Fund to the Alabama General Fund was critical to avoiding substantial cuts in Montgomery area state government employment. Federal government jobs fell by 200 during the 12 months ending in October, as defense budget‐tightening cut around 200 civilian positions at Maxwell‐Gunter Air Force Base. Another 125 full‐time military jobs at the base are slated for elimination by the end of FY2013. Efforts were ongoing in November to keep the Air Force from removing C‐130 transport planes from a Montgomery reserve unit—a move that could affect as many as 550 jobs at Maxwell. Leisure and hospitality businesses in the Montgomery metro employed 14,200 in October 2012, up 300 since January but down by 100 from October 2011. Hotel occu‐ pancy improved to an average of 72 percent for hotels near EastChase in May and 67 percent downtown, drawing inter‐ est in new hotel construction. A Doubletree Hotel will open at the end of March following a $6 million renovation of the former Clarion Hotel on Madison Avenue, making 176 more rooms and suites available for downtown conference atten‐ dees. Completion of a Fairfield Inn and Suites near Hyundai is scheduled for April. The Poarch Band of Creek Indians began construction of a $246 million, 20‐story hotel and casino that will add 285 rooms and a 90,000 square foot gaming floor to its adjoining Wind Creek Wetumpka hotel and casino. About 600 jobs will be created by the new project, bringing total employment to around 1,000. Construction resumed after a halt to address concerns of the Muskogee Nation of Creek Indians and could be completed early in 2014. However, the Southern Star Entertainment Center in Lowndes County, which had re‐ opened in March 2012, was shuttered again in November Alabama Metropolitan Areas 39 when the state seized 350 electronic bingo machines and cash. Although budget restrictions forced cancellation of the Air Force’s 2012 Information Technology Conference scheduled for Montgomery, a number of conventions and sporting events brought influxes of people to the area during 2012. A girl’s 16 and under softball tournament drew 180 teams in the fall. The new $22 million Cramton Bowl Multiplex opened for sporting events in July and hosted the Alabama All‐Star Sports Week; at least 24 events are on the schedule through 2013. More than 30,000 visitors were in town for the 19th annual Buckmasters Expo. And the Navistar LPGA Classic in September that brought 144 top women golfers to Prattville’s Capitol Hill Course contributed an estimated $7 million to the area economy. CBS will televise the new college football All‐Star game from the renovated Cramton Bowl in January 2013, with Raycom Media as the title sponsor. The Emory Folmar YMCA Soccer Complex, dedicated in September, hosted the men’s NAIA Soccer Championships in late fall. Development of downtown Montgomery as a location for entertainment and dining continued. New businesses opening during the year included the restaurant Central, SandBAR at the Silos, Barra Hookah, Railyard Brewing Co., Irish Bred Pub, and Aviator Bar. New dining and shopping options across town included several eateries at Zelda Place, Festival Plaza, Montgomery East Shopping Center, and Eastchase Market Center; Versona Accessories and Peach Mac at The Shoppes at Eastchase; Alabama Outdoors at Festival Plaza; Goody’s at Colonial Promenade; and Hibbett Sports in Governor’s Square. Prattville’s High Point Town Center is expected to benefit from new management by Jim Wilson & Associates as it continues to recover from the recession. A project to widen Old Farm Road will improve access to Prattville shopping. The City of Montgomery, continuing its strategic development initiative to purchase blighted or unused properties, spearheaded planning and improvement efforts in the area during 2012. Sale agreements are in place for many of the 12 properties the city owns on Dexter Avenue, with most slated for retail, restaurant, and commercial use. Some facades are being updated and upper floors converted to residential use. Demolition of the former Sears building on Court Street opens up that site for redevelopment. Meanwhile, the new City Hall opened downtown; private renovation of the historic Webber Building next to City Hall will feature retail, business, and residential floors. Birming‐ ham developer JS Group is pursuing plans to turn the park‐ ing lot at the Corner of Bibb and Commerce Streets into a $15 million development with restaurants and apartments. Construction could start this spring on a $10 million apart‐ ment and restaurant development at the Old Skate Park on Bibb Street. The Printing Press Lofts, under construction on Court Street, will contribute 21 lofts in mid‐2013 to the estimated 3,000 residential units needed in downtown Montgomery. Montgomery’s former Tulane Court housing project site will be reborn as the Plaza at Centennial Hill, a 40 Alabama Metropolitan Areas mixed income development with up to 340 housing units; ground was broken on the 129 units in Phase 1 in May. As part of the Madison Avenue Gateway Plan, the City of Montgomery is buying the State House Inn Plaza for im‐ plosion and resale and has acquired the properties needed for construction of a new municipal court. Revitalization is ongoing in West Montgomery, with a combination of city and nonprofit projects. Streetscaping and façade renova‐ tions are underway along West Fairview Avenue, and work should be wrapping up on Phase I of the Genetta Park Stream Restoration project. An investor has been reno‐ vating the Highland Village apartments, while the nonprofit ACTS has been buying distressed properties from the city to renovate and sell. Christian ministry House to House is working to revitalize the Washington Park community. Federal funding will go toward improving the attractiveness of the last section of the Selma to Montgomery National Historic Trail. Renovations that will turn Overlook Park near Maxwell into Wright Brothers Park should be complete for a mid‐2013 opening. The city continus to work with developers on a plan to sell city‐owned properties on Maxwell Boulevard for mixed use that would include 150 apartments as it pursues efforts to improve the connection between Maxwell Air Force Base and downtown. Other projects completed or ongoing during 2012 will contribute to the quality of life and housing opportunities available to area residents. The recently‐approved Atlanta Highway Master Plan seeks to make that area of Mont‐ gomery more attractive and pedestrian and bike friendly. Plans for the city‐owned portion of the old Montgomery Mall include a fire station, police offices, and an indoor public walking track. Future renovations could create a suitable location for a call center business. In east Mont‐ gomery, the newly‐opened Park Crossing provides a convenient connector for access to area schools and businesses, including the new high school that is under construction. The historic Capri Theater in Montgomery’s Cloverdale neighborhood is undergoing extensive renova‐ tions. A new dog park near Blount Cultural Park is a joint project of the city and the Humane Society. The City of Prattville completed the first phase of a project to develop land adjoining Kiwanis Park with hiking, biking, and eques‐ trian trails; residential redevelopment of the historic cotton mill in downtown Prattville is progressing. With growth ongoing, the Town of Pike Road hired Volkert and Associates to develop a comprehensive plan for city services, traffic flows, and development. Volunteers in Pike Road worked with Home Depot to build a baseball field and add a vet‐ erans memorial and seating at the Old Town Hall Park. Population in the four‐county Montgomery metro area continued to increase at a faster pace than across the state; 3,405 new residents during the year ending July 1, 2011 amounted to a 0.9 percent gain. However, prices as measured by the FHFA House Price Index were down 2.3 percent in third quarter 2012 from their third quarter 2011 level. House prices in the Montgomery metro are 10.8 percent below their level five years ago, on average. Still, the area’s real estate market appears to be on the upswing, with the total number of homes sold during the first 10 months of 2012 up 13.3 percent from the same period in 2011. And building permits for both single‐family and multi‐ family homes rose during the first nine months of 2012 compared to the same period in 2011. Financially, Montgomery area residents are better off than the average Alabamian, with a 2011 per capita income of $36,450 ranking third among the 11 metros and the fourth highest FY2012 median family income of $60,100. At $39,020, the average annual wage was close to the state average and ranked fourth among the metros. the state average of 8.5 percent, but rose 0.1 percentage points from October 2011 to 7.8 percent. According to a CBER survey, the Tuscaloosa metro area had an underem‐ ployment rate of 16.8 percent in 2011, second lowest among the metro areas. Underemployment is estimated at 15,338 for 2012 by applying this rate to October labor force data. Adding the 7,702 unemployed residents, there was an available labor pool of 23,040 for the metro area, 3.0 times the number of unemployed. Manufacturing contributed 14.4 percent of Tuscaloosa area jobs in October 2012, above the state average of 13.0 percent. Mercedes‐Benz was at the heart of many positive announcements this year since it is making major expan‐ Tuscaloosa sions to its Vance plant. The company started off the year In Tuscaloosa, The reporting record‐breaking vehicle sales, up 26 percent Nonfarm Employment University of Alabama’s (thousands) compared to January 2011. The plant added a third shift for presence provided 98 the first time to meet the demand for the M‐Class, GL‐Class stability, and the metro SUV, and R‐Class crossover. The first vehicle of the second 95 area dealt with only minor generation of the upscale GL‐Class SUV was officially rolled losses in most areas during 92 out over the summer at the Vance plant. Mercedez‐Benz 2012. As always, visitors 89 suppliers brought new business to the region in 2012. Lear that came to the area for Corp., a seats and seating frame supplier, and Boysen, an 86 football games and other 2002 2007 2012 automotive exhaust systems provider, both plan to build sporting events at the Source: U.S. Bureau of Labor Statistics. new plants in nearby Brookwood. ZF Lemforder Corpora‐ University offered support tion grew its worker base by 85 with a $14.6 million expan‐ to local businesses still recovering from the damage of the sion in automotive axle systems manufacturing. BLG 2011 tornadoes. The continuing rebound in the auto in‐ Logistics expanded local operations by adding the former dustry boosted economic activity in the Tuscaloosa metro Syncreon warehouse in the Legacy Industrial Park. at both Mercedes‐Benz U.S. International and local auto‐ Other industrial development included Coskata motive suppliers. choosing Boligee as the site of its first commercial plant to A total of 2,700 nonfarm jobs were lost between make biofuel from wood wastes. Walter Energy began its October 2011 and October 2012, decreasing payroll six‐year development for a new underground coal mine in employment in the Tuscaloosa metro to 91,200. Area Tuscaloosa County that will create over 500 high‐paying jobs manufacturers added 200 jobs during the 12‐month period. once it is fully operational. Major closings also struck the Service providing industries were responsible for most of metro area with Johnson Controls laying off 103, Heartland the employment decreases in the metro, with the main Catfish shedding 150 in Hale County, and Syncreon losing losses from state and local government entities shedding 312 jobs. 2,300 jobs. The metro area also posted job declines in retail The University of Alabama (UA) again experienced a trade (100); transportation, warehousing, and utilities (100); record‐breaking year of growth. Fall 2012 saw enrollment education and health services (200); and leisure and of 33,602 students, a 5.8 percent increase from 2011. hospitality (300). The final closing of the W.D. Partlow Another championship season for The University of Developmental Center in Tuscaloosa at year‐end 2011 Alabama’s Crimson Tide football team brought fans and resulted in the layoff of the last of the 455 employed at the opportunities to Tuscaloosa. Alabama football games bring facility when the closure was announced. Wholesale trade, approximately $15 million into the local economy for most which added 300 positions, was the only service providing game weekends, and against major rivals like LSU, Auburn, sector to post gains between October 2011 and October and Tennessee, the games produce an additional $2 to $3 2012. The forecast for Tuscaloosa metro employment in million in impact. University women’s athletics teams were 2013 is mildly optimistic, with the expectation of a 0.4 also highly successful in 2012, bringing home national percent employment expansion. GDP forecasts are also championships in gymnastics, softball, and golf. encouraging; Tuscaloosa area output should grow 1.5 UA academics were esteemed this year as well with the percent over the next year. School of Law earning its highest ever rank of 29th in the The Tuscaloosa metro imported fewer workers in the year’s U.S. News & World Report’s ranking of law schools. past year, providing only about 300 more jobs than the The Manderson Graduate School of Business was named the number of employed residents, compared to 2000 from the fourth most popular business school in the country by the previous year. During the 12 months through October 2012, same magazine, and the Department of Advertising and employment of area workers and the metro’s labor force Public Relations was again one of the top five finalists for contracted 1.8 percent. Unemployment remained below the PR Education Program of the Year award. Other bright Alabama Metropolitan Areas 41 spots on campus included renovations to the Sam Bailey Track Stadium, a new facility for UA’s women’s rowing team, and the dedication of the Roberta Alison Baumgardner tennis facility. A new dorm housing close to 1,000 students opened in the Fall adjacent to the former Rose Towers, which was imploded in July. Tuscaloosa’s health care capacity will continue to grow with several new developments. Construction moved forward on the new $81 million psychiatric hospital, set to open in May 2013 at the former Partlow site, which will replace the current Bryce Hospital facility. La Rocca Nursing Home plans to build a $10 million nursing home at Capstone Village on the University of Alabama’s campus with 75 beds. The Tuscaloosa Veterans Affairs Medical Center added three new physicians to focus on caring for new, incoming veterans. Tuscaloosa’s housing stock was seriously diminished by the April 2011 tornado and land owners are still determining their best course for redevelopment. Several mixed‐use developments were underway in 2012. On University Boulevard, at the site of Broad Street Apartments, an apartment and retail development with 85 bedrooms in one‐, two‐, and three‐bedroom units is under construction. Chance Partners moved forward with a mixed residential and retail project across from City Hall. Among big devel‐ opments this year were the first phase in the rebuilding of Rosedale Court, a public housing community largely destroyed by the tornado, and on the city’s Riverwalk, a new construction project created condos and retail space. Construction got underway in the fall on The Lofts, an apartment and retail development at the site of the Wood Square Shopping Center that was destroyed by the April 2011 tornadoes. With these new and rebuilding projects underway, building permits for single‐family homes in the Tuscaloosa metro were up by 167 to 409 for the first nine months of 2012 compared to the same period in 2011. At 305 the number of multi‐family units permitted was about the same as a year ago, as developers continue work on apartment buildings and condos. On a year‐over‐year comparison, prices measured by the FHFA House Price Index were up a slight 0.5 percent in the third quarter, in a year where most other Alabama metro areas posted losses. However, home sales were down 1.9 percent for the first nine months of 2012 compared to the same period in 2011. With more and more visitors coming to the area, businesses are looking to cash in on tourism dollars. The Hotel Capstone is renovating all 150 guest bathrooms for a spa‐like look. Wilson Hotel Management Group broke ground for the new $27 million Embassy Suites hotel on the corner of Greensboro Avenue and University Boulevard, and will create about 60 jobs by summer 2014. A new intercity bus started up a route between Starkville MS, Tuscaloosa, and Birmingham. Bank deposits in FDIC‐insured institutions increased by 2.5 percent during the year that ended June 30, 2012. Pittsburgh‐based PNC bought more than 400 RBC banks, 42 Alabama Metropolitan Areas including the downtown Tuscaloosa location which has been a focal point in the city for years. Robertson Banking dedicated its second branch in the Northridge Shopping Center and Renasant Bank moved forward over the summer on plans to build a two‐story bank building downtown. Population in the metro area rose by 0.8 percent in 2011 to reach 221,553. The Tuscaloosa metro area’s increase of 3.5 percent in per capita income was on par with the state’ growth in 2011. At $34,305 Tuscaloosa’s per capita income ranked fifth among the 11 metro areas. Median family income increased by 1.4 percent in FY2012 and ranked fifth at $56,500. Average annual pay of $38,240 was 97.6 percent of the Alabama average in 2011. Despite posting a modest job decline overall, area retail was vibrant and was dominated by former businesses finding new locations, or rebuilding in locations that had been destroyed by the April 2011 tornadoes. The numerous reopenings in Tuscaloosa included GFG Fitness on 13th street, Express Oil Change, Tommy Metrock’s Boulevard Salon, Full Moon Bar‐B‐Que, Krispy Kreme, Hokkaido Japanese Steakhouse, and Schlotzsky’s Deli. Tuscaloosa’s downtown area retail was energized by the openings of R & R Cigars, Sweet CeCe’s Frozen Yogurt & Treats, Royal Fine Cleaners, the Pants Store, Glory Bound Gyro Co., The Twisted Martini bar, and the relocation of Tin Top Restau‐ rant & Oyster Bar. Other openings around the city included Edible Arrangements, Ross Stores Inc. in McFarland Plaza, and Bevello’s women’s clothing store in Midtown Village. Druid City Brewing Co started brewing commercially on 14th Street, Mr. Chen’s Authentic Chinese Cooking and Oriental Market opened, and T‐Town Café opened at the old Bottomfeeders location. The River Market—Tuscaloosa’s new $3 million farmers market—opened and is next to the new luxury condominium‐retail project under construction on the city’s riverwalk. Orange Leaf Frozen Yogurt and Another Broken Egg Café opened on the development’s ground floor late in 2012. Northport gained a Hobby Lobby and Big Lots when the companies decided not to rebuild tornado‐damaged stores in Tuscaloosa. Downtown Northport added Mark’s Mart, a family‐owned specialty grocery store. Cypress Inn on Rice Mine Road opened a pavilion on their property to host private events. Nearby Moundville saw the opening of a new Family Dollar store. Entertainment attracted people to the metro area with big names like Ringo Starr and the 13th All Starr Band, Alan Jackson, and Neil Young coming to the Tuscaloosa Amphi‐ theater, among many others during the 2012 season. The Tuscaloosa Regional Air Show drew a crowd of 75,000, and the Tuscaloosa Color Run attracted 4,500. Alberta began construction on a new amphitheater and a $3 million, tennis complex in Jaycee Park. Tuscaloosa area residents were able to enjoy ice skating during the Christmas holiday season at the inaugural Holidays on the River ice rink set up at the Mildred Westervelt Warner Transportation Museum. Available Labor Pool, October 2012 Employed Under‐ employed Unemployed Available Labor Pool Percent Underemployed Alabama Anniston‐Oxford Auburn‐Opelika Birmingham‐Hoover Decatur Dothan Florence‐Muscle Shoals Gadsden Huntsville Mobile Montgomery Tuscaloosa 2,011,638 49,670 63,094 491,124 68,812 60,377 66,054 42,048 199,055 177,069 156,719 91,506 482,391 9,785 13,174 132,201 16,590 11,926 9,303 9,558 49,411 52,908 35,336 15,338 171,200 4,415 4,556 37,243 5,587 4,923 5,185 3,913 14,219 16,884 13,679 7,702 653,591 14,200 17,730 169,444 22,177 16,849 14,488 13,471 63,630 69,792 49,015 23,040 24.0 19.7 20.9 26.9 24.1 19.8 14.1 22.7 24.8 29.9 22.5 16.8 Note: Based on October 2012 labor force data and 2011 underemployment rates. Source: Alabama Department of Labor and Center for Business and Economic Research, The University of Alabama. Alabama Metropolitan Areas 43
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