PRESS ROOM

More growth seen in near future
Alabama's auto industry growth continues in spite of slow economy

HUNTSVILLE, Ala. (May 19, 2003) - Companies in Alabama that depend on the automotive industry have experienced growth since 2001, even with a slow national economy and lethargic automobile sales, a new study reports. That's welcome news for Alabama workers and economic development professionals, but the good news is that more growth is on the way.

Alabama automotive manufacturers added 9,932 jobs and $200 million in payroll between the end of 2001 and today, according to a new study by Dr. Mary Spann, a researcher at The University of Alabama in Huntsville. Spann said most of the growth last year can be traced to 13 new plants locating in Alabama, and existing companies within the state who are now doing business with automotive manufacturers. The UAH report also surveyed existing companies, and suggests at least 8,600 new jobs will be added in Alabama during the next two years. Current expansions include the Mercedes plant in Tuscaloosa, the Honda plant in Lincoln, and the addition of Hyundai in Montgomery.

"I think we're on the brink of some explosive growth," Spann said.

Some findings from the study:

• Companies with ties to the automotive manufacturing industry in Alabama were either directly or indirectly responsible for 73,778 jobs in Alabama and a payroll of $2.8 billion at the end of 2001. Those numbers grew to 83,710 and $3 billion at last count, according to Dr. Spann.
• Direct employment among Alabama's automotive manufacturers was 30,180 jobs and a payroll of $1.4 billion today. That compares with 26,934 jobs and an annual payroll of $1.3 billion at the end of 2001.
• Thirty-eight new automotive-related plants have been started since 2000.
• Madison County remains the top county in Alabama for automotive employment with 5,595 jobs, followed by Tuscaloosa with 4,980 jobs, Talladega (3,209 jobs), Limestone County (28,76 jobs), Etowah County (2,100 jobs), and Lee County (1,816 jobs).
• More than half of the automotive-related plants employ less than 50 workers

 » Read the survey now.

For more information contact:
Bernard Schroer
256.824.6855