Get the Daily News Digest in your inbox each morning. Sign Up

Commerce unveils new economic strategy

Alabama has a new long-term economic strategy, Gov. Kay Ivey and other state industry leaders announced Tuesday. 

Called Catalyst, the plan replaces the previous Accelerate Alabama that officials credit for about $67 billion in capital investments in the state since 2012.

The plan for targeted job growth also includes studying the state’s current and future infrastructure needs.

“We must have an economic development strategy that prepares Alabama for the 2030s today,” Ivey said in a written statement. “New technologies are revolutionizing every aspect of the business world, and it’s vitally important that we’re ready for these fast-paced changes so we can remain competitive for projects that create good jobs and inject vitality into communities.”

The plan identifies eight priority sectors for potential growth: mobility, a combination of automotive and aerospace industries; defense; metals and advanced materials; chemical manufacturing; forestry and wood; agriculture and food; bioscience; and technology.

For proprietary reasons, the entire plan won’t be made public but the Alabama Department of Commerce shared highlights, saying the plan expands beyond traditional recruitment tactics “to elevate human capital, facilitate entrepreneurship, attract new talent, and promote rural development.”

“With this inclusive strategic plan in hand, Alabama is committed to fostering a vibrant and diverse economy that can adapt to the rapidly changing global landscape,” Commerce Secretary Ellen McNair said in the written statement. “By prioritizing collaboration, innovation and strategic investment, Alabama is reinforcing its position as a top destination for business and economic growth.”

Infrastructure study

Commerce recently released a request for proposals for a statewide infrastructure study.

“The selected consultant will be responsible for conducting a comprehensive study to assess Alabama’s future utility infrastructure needs in relation to the state’s targeted economic growth sectors,” the RPD says. “The study will identify growth corridors in the state where key industries can be poised for accelerated expansion with the necessary tools in place to serve the needs of electric-intensive economic development projects.” 

The study is funded by an $850,000 allocation in the 2024 education supplemental spending bill approved by the Legislature and Ivey earlier this year.

The assessment will include multiple infrastructure components, including:

Road, rail, air and sea transportation systems;

High-speed internet and advanced telecommunications infrastructure;

Utilities, including gas and electrical generation;

Water and sanitation infrastructure.

According to House Bill 144, the assessment will prioritize “the geographic areas of the state with high potential for economic growth, identifying current capacities, future needs and strategic investments required to facilitate sustainable development across the state.” 

Senate education budget committee chairman Sen. Arthur Orr, R-Decatur, said legislative leadership in the spring wanted to look at the state’s capacity for energy production and transmission capabilities “and what is our current electrical capacity and what it could be in the future to supply both residences and companies.”

“I hope we’ll see what steps the state could take to better guarantee adequate power production and transmission for the decades ahead.”

The state wants to avoid energy shortages and brownouts seen in other states, including Texas and California, Orr said. 

The study will give the state a roadmap of what, if anything, the state should do to ensure Alabama Power, PowerSouth, Tennessee Valley Authority and others have the capacity and transmission capabilities to meet the projected energy needs in the next decade and beyond, Orr said.

Get the Daily News Digest in your inbox each morning.

Name(Required)
This field is for validation purposes and should be left unchanged.

Web Development By Infomedia