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Alabama Stakes Claim as Heart of Southern Auto Corridor
Incentives may have helped Alabama win a piece of the auto industry, but a strategic location, skilled labor force and quality of life have made it the heart of the Southern Automotive Corridor. Mercedes, Honda, Hyundai and Toyota, along with more than 263 automotive suppliers, call the southern state home.
Indeed, while many states are losing ground to global competition, solid state, regional and local partnerships that support economic development have led to one of the most successful eras in economic development in Alabama.
“Alabama has become a force to be reckoned with when it comes to competing in the highly competitive race for economic development projects,” said Alabama Development Office Director Neal Wade. “Our success is greatly a result of the partnerships we have forged with our economic development allies in the communities. We have found we can be much more successful if we utilize the corporate dollars, the local dollars and the state dollars in a coordinated fashion to win these projects."
According to a survey released in February 2006 by the Alabama Automotive Manufacturers Association, there were 44,834 direct automotive jobs in Alabama in 2005, up from 31,197 jobs in 2003. The survey included 263 plants. These jobs support another 79,356 jobs as a result of purchases by industry employees and companies. The 124,190 direct and indirect jobs generated a payroll of $4.8 billion in 2005.
Alabama continues working to create one of the most favorable business climates in the U.S. and to compete globally with low overall tax structure, streamlined regulatory environmental permitting procedures – sewer, air, water, solid and hazardous waste are all coordinated through one umbrella agency – and favorable tax and business development incentives.
Infrastructure-wise, almost 80,000 miles of Alabama state and local roads are anchored by 23,500 miles of federal highway. Five interstates and a strong network of four-lane highways connect every major city and most other communities throughout the state. And diversified motor freight services for business and industry are available through more than 1,600 trucking and warehousing firms.
Five Class I and 23 short line, competitively-priced railroad companies operate in Alabama along nearly 5,000 miles of rail lines hauling 93.5 million tons of cargo annually. Norfolk Southern Corporation, Burlington Northern/Sante Fe Railway, CSX Transportation, Illinois Central Railroad, and Kansas City Southern provide the majority of Alabama’s rail service.
Birmingham International Airport is home to 11 airlines. Mobile Regional Airport connects to six major hub airports in Atlanta, Dallas, Houston, Memphis, Orlando and Charlotte. And the Port of Huntsville is an inland port comprised of Huntsville International Airport, the International Intermodal Center and the Jetplex Industrial Park. Dothan, Tuscaloosa and the Shoals also provide regional air service.
The Port of Mobile is the global deepwater gateway for Alabama.
A right-to-work state, Alabama provides a capable workforce at competitive wages. Alabama Industrial Development Training (AIDT) was established to recruit, assess and train qualified potential employees at not cost to the industry. In fact, AIDT was recently named as the number one training program in the nation in a survey of site selection consultants.
The state also boasts 21 community colleges, five technical colleges, and an upper division college, along with several major universities. The Alabama Technology Network provides worker training and technology transfer to industry in the state.
Alabama also offers a low cost of doing business. Financial World ranked Alabama fifth best in the nation for operating a business when it comes to energy, labor and taxes. The state corporate income tax rate is 6.5 percent and 27 enterprise zones throughout the state offer tax credit/exemption to help encourage economic growth in areas considered to have depressed economies. Finally, Alabama makes financing available for land, buildings and equipment.
“In Alabama, we see ourselves as the heart of the Southern Automotive Corridor,” says Neal Wade, director of the Alabama Development Office. “There are plenty of opportunities for auto manufacturers and suppliers who have easy access not only to our four major automotive manufacturers, but also to plants in Georgia, South Carolina, Tennessee and Mississippi.”
To top it all off, you can’t beat Alabama’s quality of life. The state offers a comfortable, family-oriented place to live with plenty of opportunities for cultural and recreational activities with geographical diversity and a low cost of living. From golf to Shakespeare to racetracks, Alabama has something for everyone.
For more information about Alabama, contact Neal Wade at 334-242-0400 or 800-248-0033, e-mail neal.wade@ado.alabama.gov or visit www.alabamausa.org
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