Good news for economy at every turn
BYLINE: Jerry Underwood, News columnist
A abama's economy is standing in the brilliant sunshine.
At every turn, it seems, there is good news. Record low unemployment. New jobs, and the prospect for more. Major milestones for the state's expanding automotive industry.
''Our incredible Alabama economy continues rolling forward,'' Gov. Bob Riley said Friday in announcing the state's unemployment rate had hit an all-time low in October.
That figure, 3.2 percent, reflects many of the things going right in Alabama's economy, which show signs of shrugging off its reputation as a laggard. State officials say a total of 19,500 new jobs were created across the state in the previous 12 months, while unemployment rates in the Black Belt, long a trouble spot, remain in the single digits.
Meanwhile, the promise of new jobs means additional improvement is possible.
German steelmaker ThyssenKrupp, for instance, has said it is looking at Alabama as a possible home for $2.3 billion plant that would create thousands of jobs. European aerospace group EADS still intends to build an aircraft factory in Mobile, also employing thousands, if it wins an Air Force contract.
In Birmingham, Infinity Property & Casualty is pondering a plan to set up a call center to support its fast-growing operations and create 500 jobs.
Meanwhile, there are whispers that Alabama could be in the running for more auto jobs, as makers such as Toyota and Nissan examine ways to increase production. One expert said Alabama's ever-expanding auto supplier network makes the state more attractive.
''There are going to be more international manufacturers who are going to want to locate plants here and if you've got an established supply base, they are more likely to locate there than elsewhere,'' says Walter McManus, director of the Office for the Study of Automotive Transportation at the University of Michigan. ''I think it looks pretty good for Alabama.''
Last week, a study estimated Honda, which marked its fifth year of production in Alabama, has an annual impact of $4.5 billion on the state's economy.
There is a feeling conditions in Alabama are improving. The state's exports are rising, a sign of vitality. A survey showed Alabama business leaders are more confident about the state's economy than the nation's. Industry magazines have singled out the state for having top economic development and worker training programs, which are helping lay the groundwork for job creation.
Of course, there are still problem areas. For example, Riley felt compelled to chastise Birmingham area officials last week for failing to work together on key initiatives to move the region forward. Also worrisome: Birmingham is in for painful job losses as Parisian's headquarters operation disappears and AmSouth and Regions integrate their operations after a merger.
While those are serious matters, there is no doubt the sun is sparkling over a state economy that has broken through the clouds.
Jerry Underwood is business editor of The News.
His e-mail: junderwood@bhamnews.com