Civic Vox

Key Facts About Birmingham, Alabama’s Economy

Economic Contributions

• The Greater Birmingham Region generates over 30% of Alabama’s annual GDP, making it the state’s largest economic hub with a population of 1.1 million.
• In 2020, Birmingham’s GDP was $62.8 billion, growing by 26% since 2008, though slower than cities like Nashville.

Key Industries

1. Advanced Manufacturing: Over 1,300 companies operate in this sector, supported by a robust supply chain.
2. Steel: Historically significant, Birmingham remains home to major steel manufacturers like American Cast Iron Pipe Company and McWane, with recent investments exceeding $100 million.
3. Biotechnology and Healthcare: The University of Alabama at Birmingham (UAB) is a major driver of medical research and healthcare services. UAB Hospital is the area’s largest employer.
4. Finance and Banking: Birmingham is a leading banking center, hosting Regions Financial Corporation and other financial institutions.
5. Construction and Engineering: Companies like Brasfield & Gorrie are industry leaders headquartered in Birmingham.
6. Technology: A growing tech ecosystem supports startups and innovation in digital health and other fields.

Employment and Wages

• The Birmingham metro area supports 557,653 jobs across diverse sectors such as healthcare, education, finance, and manufacturing.
• Average weekly wages in the area are $1,239 compared to the national average of $1,390.

Challenges

• Population decline has impacted economic growth; Birmingham’s metro area lost 30,000 people between 2008 and 2020.
• The city’s sales tax rate is 10%, one of the highest among major U.S. cities.

Strengths

• Strategic location in the Southeast provides logistical advantages for distribution and trade.
• Favorable business climate with tax incentives and skilled workforce attracts headquarters; over 200 thriving businesses call Birmingham home.