Economic development in Alabama generated $10.1 billion in new capital investment during 2022, a new record and another indicator of strength in the state’s economy.

Gov. Kay Ivey announced that the 2022 Alabama Economic Development Impact Report, compiled by the Alabama Department of Commerce, shows investment topped the previous record of $8.7 billion, set in 2018.

“Strategic economic development has been a top priority of my administration since I first became governor because I fully understand the impact it can have on our citizens, their families and their communities,” she said. “This success is blatant evidence that our efforts are producing a brighter future for the great state of Alabama.”

Growth projects announced in 2022 generated 13,078 job commitments across the state, according to the Department of Commerce’s comprehensive annual report, released Thursday. That figure tops the previous year’s total of 10,190 jobs.

Many of the new jobs are in key industrial sectors, according to the report. This includes more than 2,800 positions in the automotive industry, nearly 1,900 in the metals and advanced materials sector, and more than 1,500 in aerospace, aviation and defense.

“These results mean Alabama’s economic development team is making a real difference in shaping a more prosperous future for the hard-working citizens of our state,” said Greg Canfield, secretary of the Alabama Department of Commerce. “And, while we’re proud of setting records, we’re just going to keep on working to deliver a better tomorrow for Alabama.”

After a $300 million investment project announced in 2022, Hyundai launched production of the electrified Genesis GV70 SUV at its Montgomery plant. (Hyundai Motor Manufacturing Alabama)

Impact projects

Well-known global corporations including Airbus, Hyundai and Toyota announced high-impact investment projects in Alabama last year. Other successes included:

• Novelis announced plans for a $2.5 billion aluminum mill with 1,000 workers in Bay Minette, the first facility of its kind to be built in the U.S. in more than 40 years.
• First Solar Inc., the largest U.S.-based manufacturer of solar panels, announced plans for a $1.1 billion factory with more than 700 workers in Lawrence County, the largest project to land in a rural county in recent years.
• Advanced ACT announced plans for a remote air traffic control tower center in Selma that is poised to revolutionize air space management in the U.S. through its technology to serve multiple airports from one location.

The First Solar and Advanced ATC projects are among those announced in 2022 that will bring nearly $1.8 billion in investment, along with 1,900 jobs, to Alabama’s “targeted” rural counties.

Since 2020, rural Alabama has been selected for growth projects involving $4 billion in investment and 5,500 job commitments, according to Department of Commerce data.

“This demonstrates our firm commitment to sparking sustainable economic growth in Alabama’s rural areas — a priority that is very important to me,” Ivey said.

Gov. Kay Ivey and other officials at the October 2022 groundbreaking for Novelis’ fully integrated aluminum manufacturing facility in Bay Minette. The facility will include recycling/casting, hot rolling and finishing for beverage can and automotive markets. The $2.5 billion investment is expected to create 1,000 jobs. (Hal Yeager / Governor’s Office)

Thriving economy

According to the report, Baldwin led the counties in new investment during 2022, with $2.5 billion, followed by Montgomery ($1.7 billion), Mobile ($1.4 billion) and Lawrence ($1.1 billion).

Montgomery was the top county for job creation, with 1,491 new positions, ahead of Mobile (1,451), Jefferson (1,259) and Baldwin (1,170).

The record-breaking economic development news comes amid signs that Alabama’s economy is thriving despite worries of a possible national recession. Recent employment levels have reached all-time highs, and the state’s jobless rate has set new lows.

In addition, Ivey announced in February that Alabama’s 2022 exports established a new annual record.

This story originally appeared on the Alabama Department of Commerce’s Made in Alabama website.