MONTGOMERY, Ala. — According to a new report, Alabama’s rural counties saw more than $1.7 billion in new capital investment in 2023, resulting in 1,732 new job commitments, a fact touted by Gov. Kay Ivey Friday during an economic summit in Prattville.
Held at Central Alabama Community College, the three-day summit saw Ivey, joined by Alabama Secretary of Commerce Ellen McNair, meet with rural economic developers to review the state’s progress in attracting investments in its rural communities.
“I’m proud to say that thanks to Secretary McNair’s leadership and the commitment of our rural development partners, 2024 has brought exciting progress in attracting new investment and job growth across our rural counties,” Ivey said in a statement.
The report, produced by the Commerce Department, shows that the new investments were led by the automotive, aerospace and advanced materials sectors. A total of 11 automotive projects were kicked off in 2023, projects that include 329 job commitments and $278 million in new capital investment.
Ten forestry projects added 185 jobs with $299 million in investment, three aerospace projects produced 120 jobs with $4.4 million in investment, and three advanced material projects added 96 jobs with $22.6 million in investment.
The significant investments in Alabama’s rural communities were due in large part, McNair said, to the state’s Site Evaluation and Economic Development Strategy grant program, known as SEEDS, one of the four economic inventive bills passed in 2023 collectively known as the “Game Plan.” The grant program was designed to fund industry ready sites to draw corporate investment into the state.
“Alabama’s rural communities are the backbone of our state’s economic strength, and the new investments in these areas are creating transformative opportunities,” McNair said in a statement.
“By teaming with local partners and leveraging strategic programs like SEEDS, we are committed to fostering sustainable growth that benefits every Alabamian. Our objective is to ensure that Alabama’s rural regions are positioned for a prosperous future, one that welcomes new industries and supports local workforce development.”
Some key investments in Alabama’s rural communities highlighted in the report include a $60 million investment by Sierra Pacific to expand its window and door production manufacturing facility in Phenix City, creating 300 jobs, and a $128 million investment by Samkee Corp., a South Korean automotive supplier, to build its first factory in Tuskegee, creating 170 jobs.
A significant share of all investment last year in the state’s rural communities came from abroad, with South Korea-based companies collectively investing nearly $288 million, creating 317 jobs. Canada-based companies invested $52.4 million for two sawmill projects, creating 84 jobs, and Germany based companies, $48.6 million for one project, an expansion of Knauf Insulation Inc., a mineral wool manufacturer, in Lanett.
The economic summit, which saw its first two days feature events in Dadeville and Alexander City, was organized by Brenda Tuck, rural development manager at the Commerce Department, who noted the role state lawmakers played in incentivizing capital investment in the state’s rural communities through legislation.
“The conditions for growth are ripe in rural Alabama, and we are fully dedicated to ensuring that our rural communities reap the rewards of these new investments,” Tuck said in a statement. “By working closely with our partners, we’re turning challenges into opportunities and delivering lasting economic benefits to the people of Alabama.”
While significant, the investment in Alabama’s rural communities in 2023 came short of what was reported in 2022, which saw $1.8 billion in new investment and around 1,900 job commitments.