Alabama’s economy and storage space industry

Alabama's Economy and Storage Space Industry

Alabama is home to a diverse range of industries that contribute significantly to the state's economy. Among the leading sectors, manufacturing, transportation, construction, and warehousing are predominant, and the companies operating in these sectors are the main employers in Alabama.

The manufacturing sector is a primary driver of Alabama's economy, employing hundreds of thousands of people. Major employers in Alabama's manufacturing sector include Mercedes-Benz U.S. International, Hyundai Motor Manufacturing Alabama, Honda Manufacturing of Alabama, and Airbus. Mercedes-Benz U.S. International has a large assembly plant in Vance where it produces various models for the North American market. Hyundai Motor Manufacturing Alabama has its only U.S. manufacturing facility in Montgomery, where it produces some of its most popular models. Honda Manufacturing of Alabama operates a massive production facility in Lincoln, where it manufactures a variety of vehicles and engines. Airbus, though primarily known for its aerospace manufacturing worldwide, also has a significant presence in Mobile, where it manufactures several aircraft models.

In 2022 the manufacturing industry generated a total of $39.63 billion dollars, representing a percent share of 16.21% of the state's GDP.

The transportation sector is another key component of Alabama's economy. Major employers in this sector include CSX Transportation and Norfolk Southern Railway, both of which operate extensive rail networks throughout the state. Additionally, the state is home to numerous trucking companies such as Boyd Brothers Transportation and Baggett Transportation, which provide significant employment opportunities. Only in 2019, the trucking industry provided over 109,980 jobs with an average annual salary of $48,920.

In the construction sector, Brasfield & Gorrie and BE&K Building Group are leading employers. Brasfield & Gorrie is one of the largest privately held construction firms in the nation and is based in Birmingham. It carries out projects across various sectors including healthcare, commercial, institutional, federal, municipal, industrial, and water resource structures. BE&K Building Group offers a wide range of construction services and has completed several landmark projects in Alabama.

The warehousing sector also contributes substantially to Alabama's economy; in 2022 this industry generated revenue of $12.8 billion dollars. Major employers in this sector include Walmart Distribution Center and Home Depot Rapid Deployment Center. Walmart operates several distribution centers across the state that support its retail operations throughout the region. Home Depot's Rapid Deployment Center in McCalla plays a crucial role in ensuring that Home Depot stores across the Southeast have all the products they need. On the retail rental side, Alabama has seen growth in the self-storage space for rent niche.

In 2022 the top 5 largest employers of Alabama were:

• Redstone Arsenal
• University of Alabama at Birmingham
• Maxwell Air Force Base
• State of Alabama
• Mobile County Public School System

Supporting over 70,000 jobs in the whole state.

Alabama's economy is bolstered by diverse industries including manufacturing, transportation, construction, and warehousing. The major employers within these sectors not only provide significant employment opportunities but also contribute to the overall economic growth of the state. The state government's supportive policies towards business development further make Alabama an attractive destination for companies across various sectors.

Another positive economic indicator is Alabama's GDP growth, passing from a real GDP of $209.98 billion dollars to $213.26 billion in the years 2021-2022.