EDITORIAL FROM THE DESK OF
REPRESENTATIVE MIKE MILLICAN
The Beginning of an Economic Recovery Led by Alabama’s Auto Industry
Since the recession started back in 2007, Alabama has seen some pretty
tough times. We had a record spike in unemployment, our exports and
manufacturing staggered, and the overall health of our economy has made
families worry about the future.
Senator Roger Bedford and I have been working on an Alabama Economic
Development Plan for Marion and Winston Counties. With the new auto plant
coming to Mississippi, we are working to prepare our infrastructure for tier
1 and tier 2 suppliers to locate in our industrial parks. Hopefully this
will bring new manufacturing plants and new jobs to our area soon.
There have been recent signs of recovery in our state. Alabama's jobless
rate fell to 9.7 percent in July, which is down from 10.3 percent in June.
Even though the figure is still too high, it is the lowest level in 15
months. The figures show that there are 20,000 more Alabamians at work than
there were a year ago, and the long-term trend is one of continued
strengthening in the job market.
Our state is getting back to work again, and the recovery is being led by
our state’s number one industry, automobiles.
Output in Alabama’s auto plants rose more than two-thirds than a year ago,
jumping from 140,961 last year to 236,152 vehicles this year through the end
of May. Shifts and hours are up for Honda, Mercedes, Hyundai, and the dozens
of suppliers who operate in our state. More than 140,000 Alabamians are hard
at work in the auto industry today.
It wasn’t that long ago when Alabama didn’t even have an auto industry. In
1994, Alabama did not manufacture one car or truck, not one. Today, Alabama
has become second in the nation in the number of autos it makes, a
remarkable pattern of growth that is unmatched in our state history, and is
the model for every other state in the country.
Back in 1994, then Gov. Jim Folsom landed Alabama’s first auto manufacturer,
Mercedes-Benz, making a deal to build a groundbreaking plant in Vance.
Folsom was criticized by many at the time about state government taking such
an active role in industrial recruiting. The naysayers believed that state
government should have no role in working with the private sector, and
providing recruitment incentives somehow interfered with the free market.
Some just didn’t believe Alabama could compete in something as complex as
auto manufacturing.
What Folsom did in landing the Mercedes plant was organize our state to
enter the modern world economy, and forever changed Alabama. He showed that
we could prepare outstanding industrial sites. He set up tax structures that
supported manufacturing. Most importantly, he highlighted to the world the
skill and effectiveness of the Alabama worker. Alabama has the nation’s top
rated jobs training program, AIDT, and is one of the biggest draws for new
industries to come to Alabama.
The state's efforts to build an infrastructure of workforce development to
complement our prime industrial locations has moved Alabama from last to
second in the auto industry within a span of just fifteen years.
Alabama has continued the streak of landing auto companies by bringing
Honda, Toyota and Hyundai to the state.
Anyone who continues to doubt the role state and local government can play
in moving the state economy forward only need to look in Vance, Lincoln and
Montgomery, and the dozens of other cities and towns that have an auto
supplier located there. Today, a vibrant auto industry reverberates
throughout the state economy, and while it is not in and of itself enough to
lift us out of the doldrums, it is certainly helping to move us forward.
State government and the hard working people of Alabama are responsible for
this success.
There is little doubt we have a long way to go before our state has a full
recovery from the recession. There are many sectors still anemic, many
people who can’t find jobs who want them. We’ll need other aspects of our
economy to follow what autos have done. And we’ll continue to make sure
state and local governments play a vital role in moving Alabama’s economy
forward.
Contact Information
State House: Room 128
11 S. Union Street
Montgomery, AL 36130
(334) 242-7768 Home: 995 Country Estates Drive
Hamilton, AL 35570
Home Phone:
FAX:
(205) 921-3214
(334) 353-3350
Email: mike.millican@alhouse.gov