Center for Business and Economic Research | Montgomery
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Montgomery
Services and state government were the mainstays of the Montgomery metro economy,
helping the area add 1,400 jobs between October 2007 and October 2008 for a 0.8
percent increase that was 3rd highest among the 11 metro areas. Alabama’s state
government employment increased by 680 statewide in FY2008; with the state capitol
and a number of correctional facilities, the Montgomery area saw a net gain of about 500
over the last year. Professional and business services jobs also climbed by about 500,
aided by growing call center employment, while employment in education and health
services rose by 200. The leisure and hospitality sector saw 400 new jobs during the
year, boosted by completion of the Renaissance Montgomery Hotel & Spa and by strong
job growth at restaurants and other food service establishments. Despite new retail
store openings across the metro area, the loss of 400 positions at general merchandise
stores dropped overall retail employment by 100. Manufacturing shed 200 jobs. Total
employment of area residents fell by 1.6 percent, with 2,630 fewer individuals working in
October 2008 compared to a year earlier. At the same time, the Montgomery area labor
force grew by 1,630 (0.9 percent), pushing unemployment up from 3.2 percent in
October 2007 to 5.7 percent in October 2008.
Twenty-eight new and expanding industry announcements in 2007 proposed
investments totaling $433.2 million, with the creation of almost 1,500 jobs. Hyundai’s
planned $270 million second engine plant that will produce a 2.4 liter, 4-cylinder engine
for both Hyundai and Kia was under construction in 2008 and is expected to provide
about 520 new jobs. Other auto industry-related development included a $55.6 million
expansion at Mobis Alabama that will create 140 jobs. Glovis Alabama expected to
create 170 jobs when its new $12 million auto parts warehouse opened in fall 2008.
Daehan Solutions in Lowndes County undertook a $3