Shoals economy got boost in '06 from projects

MONTGOMERY -- Alabama's varied economy continued to produce jobs for workers and profits for employers in 2006 and should remain robust in 2007, speakers said Tuesday at an economic outlook conference.

"The news today is not only as good as it was a year ago, it's better,'' said Carl Ferguson, former director of the Center for Business and Economic Research at the University of Alabama.

Ferguson, who turned the directorship over to Samuel Addy, is an economist with the center.

Conference speakers reviewed Alabama's 2006 performance and tried to predict what 2007 holds for the state's economy, which is characterized by record low unemployment.

The conference included information about Alabama's metropolitan statistical market areas.

The Shoals' unemployment rate ended 2006 at 3.7 percent. Alabama's unemployment rate remained low in 2006, ending the year at 3.6 percent, according to a state report.

David Bronner, chief executive officer of the Retirement Systems of Alabama, said he hopes for good economic news for the Shoals within a few weeks.

He wouldn't reveal details when asked. Based on the center's 2007 Economic Outlook, however, the Shoals is a finalist for a "major industry'' that would require many welders and produce about 1,400 jobs. The company is looking to build at the Barton Riverfront Industrial Park in Colbert County.

The Shoals' economy got a boost in 2006 from the RSA's investment in the Robert Trent Jones Golf Trail courses in Ford City and complementary projects in Florence.

Tourist revenues increased 37 percent in 2005 just from the new Marriott Shoals Hotel, Spa and Conference Center in Florence.

Manufacturing employment was flat through September in the Shoals, but education, health services and construction contributed about 100 jobs each.

North American Lighting pledged a $22 million investment that could create 320 jobs by mid-2007, and SCA Tissue is undergoing a $14 million expansion.

And retailer Kohl's opened, creating about 150 jobs. The economic research center said the Shoals is attempting to secure spin-offs and residents from the BRAC military transfers to Huntsville's Redstone Arsenal.

The nation's median family income in 2006 was $62,400 and Alabama's was $51,400. In the Shoals, the median family income was $50,000.

Statewide, the automotive, aerospace, shipbuilding and support industries are helping keep the economy strong, experts say.

Addy said Alabama's challenges include educating its workforce so it will qualify for higher paying jobs that the state needs in order to boost wealth.

In addition, he said, the state's workforce must grow in order to fill jobs that would go elsewhere.

He said economic developers should target high-earning industries for workers who receive training in science, math, complex problem solving and systems skills.

"Together, work force development and economic development can build a strong and well-diversified state economy,'' Addy said.

Sometime this year, the state's workforce will reach 2 million for the first time, based on data provided by the research center.

Non-farm employment increased statewide by 400 jobs from January 2006 to September 2006, all in the service area.

Dana Beyerle can be reached at (334) 264-6605 or dtb12345@aol.com.