Study puts JCEIDA annual economic impact on Alabama’s Jefferson County at $14.5 million, nearly 5,000 jobs
The Jefferson County Economic & Industrial Development Authority (JCEIDA) has 4,878 employees working in its two industrial parks and a direct impact on the county of $14.5 million per year, according to findings by the Alabama SBDC Network in the University of Alabama’s Research and Economic Development Department.
Jefferson Metropolitan Park at Lakeshore consists of 337 acres and lies within the city of Birmingham. Jefferson Metropolitan Park at McCalla consists of 739 acres in the county.
“Those jobs created in those parks … are going to be a thing of the future,” said Heather Wright, regional manager for Alabama SBDC Network at the University of Alabama, who researched and developed the JCEIDA Economic Impact Study.
In addition to the economic impact of capital expenditures, jobs, payroll, property tax, sales tax and motor vehicle expenditures, there is the “induce job effect,” she said. “When you have a job created in industry, they also hire an accountant or attorneys, or they shop at grocery stores and there are things they do within our community that make a greater impact, because they spend their money there … and create jobs in the grocery stores and the retail stores. Because of their spending, that’s how more jobs are created.”
Othell Phillips, executive director of JCEIDA, began his term Nov. 1, 2022, after the retirement of Ted vonCannon, who led JCEIDA for more than 10 years. Phillips said the number of employees will continue to grow. He pointed out that Prestige Development has built two spec buildings with successful results in the past year. Lear (a Mercedes supplier) has hired about 400 employees and is negotiating a lease for Building Two.
Several projects are underway at Jeff Met McCalla, including Lear, Gulf States Distributing and Smucker’s, whose capital investment of $1.1 billion is the largest in Jefferson County history. Already, the projected number of jobs at Smucker’s, expected to open by 2025, has increased to 800 from the first-announced 750 expected workers.
According to the report, the success and retention of the JCEIDA parks have a substantial impact on the economy of Jefferson County and Alabama.
For example, the direct impact on Jefferson County is $14,537,284 per year and for the state of Alabama, the impact is $23,064,476 per year, according to the study.
“Our goal is to promote Jefferson County as the premier location for manufacturing and industry, attract investment from leading global companies, retain and grow existing companies, develop, train and recruit talent, advocate for a competitive business climate and primarily provide quality sites for economic development within our industrial parks,” Phillips said. “I believe the results show this agency has done pretty dang good of that, and we are looking forward to continuing the success.”
According to the report, for every dollar spent by JCEIDA, the county receives $13.22 in direct impact and the state receives $20.98.
The report said the industrial parks have generated approximately $4.5 billion of outside capital investment in today’s dollars since the authority’s inception in 1999.