Economy
From Birmingham's early days onward, the steel industry has always played a crucial role in the local economy. Though the steel industry no longer has the same prominence it once held in Birmingham, steel production and processing continue to play a key role in the economy. Steel products manufacturers American Cast Iron Pipe Company (ACIPCO) and McWane are based in the city. Several of the nation's largest steelmakers, including CMC Steel, U.S. Steel, and Nucor, also have a major presence in Birmingham. In recent years, local steel companies have announced about $100 million worth of investment in expansions and new plants in and around the city. Vulcan Materials Company, a major provider of crushed stone, sand, and gravel used in construction, is also based in Birmingham.
In the 1970s and 1980s, Birmingham's economy was transformed by investments in bio-technology and medical research at the University of Alabama at Birmingham (UAB) and its adjacent hospital. The UAB Hospital is a Level I trauma center providing health care and breakthrough medical research. UAB is now the area's largest employer and the second largest in Alabama with a workforce of about 18,750 as of 2011. Health care services provider HealthSouth, Surgical Care Affiliates and Diagnostic Health Corporation are also headquartered in the city.Caremark Rx was also founded in the city.
Birmingham is also a leading banking center, serving as home to two major banks: Regions Financial Corporation and BBVA Compass. SouthTrust, another large bank headquartered in Birmingham, was acquired by Wachovia in 2004. The city still has major operations as one of the regional headquarters of Wachovia, which itself is now part of Wells Fargo Bank. In November 2006, Regions Financial merged with AmSouth Bancorporation, which was also headquartered in Birmingham. They formed the 8th largest U.S. bank (by total assets). Nearly a dozen smaller banks are also headquartered in the Magic City, such as Superior Bank and (until its failure in 2009 and reformation as Birmingham-based Cadence Bank) New South Federal Savings Bank. As of 2009, the finance & banking sector in Birmingham employed 1,870 financial managers, 1,530 loan officers, 680 securities commodities and financial services sales agents, 380 financial analysts, 310 financial examiners, 220 credit analysts, and 130 loan counselors.
The telephone company that is now owned by AT&T Inc., which was formerly BellSouth and before that South Central Bell, which had its headquarters in Birmingham, has a major nexus in Birmingham, supported by a skyscraper downtown.
The insurance companies Protective Life, Infinity Property & Casualty, ProAssurance, and Liberty National have their headquarters in Birmingham, and these employ a large number of people in Greater Birmingham.
Birmingham is also a powerhouse of construction and engineering companies, including BE&K, Brasfield & Gorrie and B.L. Harbert International which routinely are included in the Engineering News-Record lists of top design and international construction firms.
Two of the largest soft-drink bottlers in the United States, each with more than $500 million in sales per year, are located in Birmingham. The Buffalo Rock Company, founded in 1901, was formerly a maker of just ginger ale, but now it is a major bottler for the Pepsi Cola Company, and the Coca-Cola Bottling Company, United, founded in 1902, is the third-largest bottler of Coca-Cola products in the United States.
The Birmingham metropolitan area has consistently been rated as one of America's best places to work and earn a living based on the area's competitive salary rates and relatively low living expenses. One study published in 2006 at the Web site Salary.com determined that Birmingham was second in the nation for building personal net worth, based on local salary rates, living expenses, and unemployment rates.
A 2006 study by web site bizjournals.com calculated Birmingham's "combined personal income" (the sum of all money earned by all residents of an area in a year) at $48.1 billion.
Birmingham's sales tax, which also applies fully to groceries, stands at 10 percent and is the highest tax rate of the nation's 100 largest cities.
Although Jefferson County's bankruptcy filing was the largest government bankruptcy in United States history, Birmingham remains solvent.
See also: List of corporations with a major presence in Birmingham, AlabamaRead more about this topic: Birmingham, Alabama
Famous quotes containing the word economy:
“The aim of the laborer should be, not to get his living, to get “a good job,” but to perform well a certain work; and, even in a pecuniary sense, it would be economy for a town to pay its laborers so well that they would not feel that they were working for low ends, as for a livelihood merely, but for scientific, or even moral ends. Do not hire a man who does your work for money, but him who does it for love of it.”
—Henry David Thoreau (1817–1862)
“Everyone is always in favour of general economy and particular expenditure.”
—Anthony, Sir Eden (1897–1977)
“Wise men read very sharply all your private history in your look and gait and behavior. The whole economy of nature is bent on expression. The tell-tale body is all tongues. Men are like Geneva watches with crystal faces which expose the whole movement.”
—Ralph Waldo Emerson (1803–1882)