Paul DeMarco: Alabama Construction Industry important pillar of State’s Economy
Since the pandemic, the Alabama economy has had its ups and downs. However, the good news is that the business climate in Alabama has outperformed other states. One sector of the Alabama business community that has really increased is the construction industry. A recent study by the Associated Builders and Contractors of Alabama showed that between 2015 to 2021 there was a 97 percent increase in commercial construction output to the tune of $9.4 billion. When you look at the direct impacts on all output payroll and employment, the earnings were over $11 billion. Most importantly the workforce in the Alabama construction industry has reached an estimated 200,000 jobs in this period. For Alabama, agriculture and manufacturing are the leading industries in the state. You can now add the construction industry, which comprises 6.7 percent of Alabama’s gross domestic product and creates over 7 percent of the jobs in the state. All in all, the construction industry creates more than a half a billion in taxes paid to the state. While Alabama has plenty of both public and private building needs, some of the state’s construction firms compete across the Southeast and Nation as some of the United States’ most productive companies in the industry. As Alabama has grown, the state economy has diversified to provide more job opportunities and income for state coffers. The construction industry has now become one of the essential drivers of the Alabama economy. Paul DeMarco is a former member of the Alabama House of Representatives and can be found on X, formerly Twitter, at @Paul_DeMarco
Allen Harris: Construction industry positions Alabama for future success
Alabama’s construction industry is built on a foundation of customer service, integrity and work ethic. As CEO of Bailey-Harris Construction and board chairman of the Associated Builders and Contractors of Alabama (ABC), I have experienced firsthand the value a career in commercial construction has on our state’s economy and future leaders. Commercial construction is vital to Alabama’s economic footprint and touches every aspect of our residents’ lives. A study recently conducted by the Associated Builders and Contractors of Alabama found that commercial construction stimulated nearly $13 billion of business in our state and generated 156,000 full-time jobs in 2015 alone. According to the study, the economic impact of commercial construction has also generated a payroll of more than $6 billion a year and made a direct impact of $444 million into the state Education Trust Fund. These numbers showcase the impressive impact the construction industry has in our state. Because of this, we must continue to build on its success and invest in efforts that enhance education initiatives and craft training skills to create a pipeline of opportunities for future industry leaders. Two years ago, the Associated Builders and Contractors of Alabama and Alabama’s K-12 education system joined together to establish the Academy of Craft Training to recruit, educate and employ high school students through construction careers. The Academy gives students the opportunity to build relationships and learn from industry leaders and prospective employers. It has quickly become a model for public-private partnerships with the Associated Builders and Contractors, the State Department of Education and the Department of Commerce hitching wagons to better our workforce product and our state. While just two years old, the Academy has quickly become a model for all-in workforce development. Within its first year of operation, the Academy of Craft Training placed 94 percent of participating seniors in a job after graduation. By equipping students with the necessary skills and real-world experience, the Academy provides opportunities for students to learn craft skills, make a good living and eventually advance into a supervisory level with long-term career benefits. For example, our teachers are industry trained; our classrooms resemble construction jobsites with rules and regulations to which we adhere; Personal Protective Equipment (PPE) is worn at all times and other practices that emulate actual job conditions are employed. Upon the course completion, we are finding our student graduates have a positive infection. Infection? Yes, a positive infection that translates to a passion for the industry. It was last a fall Saturdayafternoon at an Auburn University campus jobsite and I felt a tap on my shoulder. It was Jacob, a recent graduate of the Academy. “Jacob, what in the world are you doing here?” I asked. He had come to see the site crane operator, Tommy. He and Tommy had developed a working mentor relationship on a Tuscaloosa jobsite. Jacob immediately inquired, “Mr. Harris, where can I get a vest and glasses? I need to help walk the rig out.” Late on Saturdayafternoons, most young men would be hanging out with friends or relaxing. Jacob just wanted to be around the work. Passion is something our instructors talk and cultivate often at The Academy. Yes, work cures most ills. Through stories like this, we see how Alabama’s construction industry touches lives. I encourage the state to continue supporting this important initiative. By teaching students hands-on trade skills and requisite soft skills, paired with values of integrity and work ethic, we can ensure that future leaders will continue to build upon Alabama’s construction industry that supports our communities. ••• Allen Harris is Founder and CEO of Bailey-Harris Construction, a leading industrial and commercial contracting firm based in Auburn, Ala. He currently serves as Chairman of the Board of the Associated Builders and Contractors of Alabama.
Construction industry makes $12B economic impact in Alabama
Associated Builders and Contractors of Alabama (ABC Alabama), the largest commercial construction association in the state, released a new study detailing the construction industry’s $12 billion annual impact on state economy. ABC Alabama released the report, prepared by Keivan Deravi, economics professor at Auburn University at Montgomery, on Wednesday. According to the study, the industry has a direct annual impact of nearly $8 billion and, combined with the indirect impact, an annual impact of $12 billion a year. David Pugh, chairman of the Association’s board and partner in the Construction and Government Contracts Practice Group at Bradley Arant Boult Cummings LLP in Birmingham, said the study was well-timed and necessary, but believes the study paints a modest picture of the industry. In conjunction with the release of the study, Gov. Kay Ivey toured the Academy of Craft Training Center in Birmingham, Ala. In 2016, ABC Alabama established the Academy of Craft Training (ACT) as a public/private partnership between the construction industry and the State of Alabama’s K-12 education system to recruit, educate and guide high school students for educational and employment opportunities in the construction industry. “Alabama’s commercial construction industry, with its $12 billion impact on our economy, continues to play a vital role in moving our state forward,” Ivey said according to AL.com. “I am committed to workforce development efforts, which prepare Alabamians for the jobs of today and of tomorrow, and provides employers with the trained workers they need.” Ivey said she wants to expand the ACT throughout the state and duplicate its structure for other industries. Here’s a look at the commercial construction industry’s economic impact on the state:
