Research eyes areas' impact on economy

Rex Burleson said it's only a matter of time before the Shoals becomes an even bigger player in the state's economy.

"With everything that's happening and the number of jobs that will be filled within the next year, we'll be moving the list of contributors to the state's economy very soon," said Burleson, a member of the Colbert County Commission.

According to a recent study by the Brookings Institution on metropolitan areas' impact on state economy, of the 12 Alabama metropolitan areas, the Florence-Muscle Shoals metro area is eighth in contributing to the state's economy.

The report, which is based on 2005 data, indicates that the Florence-Muscle Shoals metro area population of 142,041 contributed $3.4 billion in gross domestic product, or 2.3 percent of the state's total gross domestic product of $151 billion. The Florence-Muscle Shoals metropolitan area consists of Colbert and Lauderdale counties.

Alan Berube, an official with the Brookings Institution's metro policy program, said the gross domestic product is the value of the goods and services that are produced and provided by an area.

"What this study does is show that metropolitan areas are the real engines that drive the nation's economy," Berube said.

In Alabama, the Birmingham-Hoover metro area, which is ranked 49th among the nation's 363 metropolitan areas, contributes the most to the state's economy. The reports indicates the in 2005 the Birmingham area produced $49.3 billion, or 32.6 percent, of the state's economy.

"For years, Birmingham has been the driving force in the state's economy and obviously still is," said Dr. Kerry Gatlin, dean of the College of Business at the University of North Alabama. "Huntsville has been gaining and is continuing to gain. Mobile has been a little slow, but with the new steel company moving into that area, I expect we'll see a resurgence from that area of the state.

"And what's happening to us will do nothing but help us become a bigger part of the state's economy."

With SCA Tissue, North America Lighting and a railcar manufacturer that will employ 1,800 workers, Burleson said the Shoals is on the verge of something very big.

"And there are other things in the works. We're right in the middle of the pack now (in comparison to other state metro areas), but I think we'll be increasing that position soon," he said.

Berube agrees.

"These will be considered export jobs, where an area exports the product. And rather than just the product serving the local population, they will serve other areas of the country, but the money from the employees will stay in the Florence-Muscle Shoals metro area," Berube said.

He said the study, which took almost a year to complete, shows the federal government that it needs to help metro areas even more.

"And it shows that no matter what part of the country you're in, you provide a vital part to the nation's economy," he added. "People in New York make a lot of money so they put money into the economy, and it takes people in South Dakota who man the call centers for national credit card companies to help those people in New York to push and boost the federal economy.

"Basically, this shows that every state, every metro area, is vital, very vital to the economy."

Gatlin said anytime you can improve your local economy, it's going to have a trickle-down effect.

"Anytime you can improve a metro area, you're going to improve the impact on the state. And that's what's going to happen to the Florence-Muscle Shoals metro area," Gatlin said.

Tom Smith can be reached at 740-5757 or tom.smith@timesdaily.com.