Birmingham, AL – Economic Contributions of Commercial Construction Unveiled
A newly published study has brought to light the **crucial role** the commercial construction industry plays in Alabama’s economy, emphasizing its substantial contributions to job creation and state revenue. Conducted by Dr. Kevian Deravi on behalf of the Associated Builders and Contractors (ABC) of Alabama, the study sheds light on the sector’s impressive growth over recent years.
Significant Economic Impact
According to Dr. Deravi, the commercial construction industry in Alabama is not just a business; it is a powerhouse that significantly affects the state’s financial landscape. The industry saw a remarkable increase in impact, growing from $15 billion in 2015 to an impressive $17.2 billion in 2021. This represents a 15% growth in just six years, highlighting the sector’s strength and its vital role in Alabama’s economic development.
In 2021 alone, the commercial construction sector generated an output of $9.4 billion, which marks a staggering 97% increase from 2015 figures. Such growth is reflective of the sector’s robust performance, as it is intertwined with various facets of the state’s economy.
Job Creation and Workforce Impact
Perhaps one of the most striking findings of the study is the employment impact of the commercial construction industry. It is responsible for an estimated 200,000 full-time jobs, showcasing how vital the sector is in providing *employment opportunities across the state*.
Governor Kay Ivey echoed these sentiments, stating, “Commercial construction provides the economic support and distinct physical landscape that defines our state today.” She noted that the interconnectedness of Alabama’s economy is evident as commercial construction fuels growth across numerous sectors.
Contribution to State Taxes
Furthermore, the study reveals that the construction industry contributed over $600 million in state taxes in 2021. This impressive sum is notable as it could cover the educational expenses of every student in both Jefferson and Shelby counties combined, emphasizing the sector’s positive ripple effects on local communities.
Long-term Perspectives
Dr. Deravi highlighted that commercial construction constitutes approximately 6.7% of Alabama’s GDP and produces 7.2% of the state’s jobs. Such significant contributions mark the industry as a key player in Alabama’s economic framework.
Mark Mattox, Vice President of Robins & Morton and Chairman of ABC of Alabama, reinforced the idea that the study serves to display the far-reaching impact of the industry. Mattox stated, “This study helps us recognize and communicate the industry’s impact beyond annual revenue aggregates.” He emphasized the necessity for ongoing tracking of economic indicators related to construction to showcase its influence as a powerful economic driver.
Looking Ahead
As the industry continues to grow, Dr. Deravi predicts that its impact could exceed $20 billion by 2025. To keep pace with these developments, the Associated Builders and Contractors of Alabama are planning to conduct an updated study in June 2025. This will help stakeholders understand the trends and advances in the commercial construction sector.
The findings of this study highlight the **vital importance** of the commercial construction industry in not only shaping Alabama’s physical landscape but also driving its economic future. With substantial contributions to job creation, state tax revenues, and the overall economy, it is clear that this sector plays a significant role in the growth and prosperity of the state.
Author: STAFF HERE BIRMINGHAM WRITER
The BIRMINGHAM STAFF WRITER represents the experienced team at HEREBirmingham.com, your go-to source for actionable local news and information in Birmingham, Jefferson County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Sidewalk Film Festival, Sloss Music & Arts Festival, Magic City Classic, and civil rights commemorations. Our coverage extends to key organizations like the Birmingham Business Alliance and the Birmingham Civil Rights Institute, plus leading businesses in healthcare, finance, and manufacturing that power the local economy such as UAB Medicine, Regions Bank, and Encompass Health. As part of the broader HERE network, including HEREHuntsville.com, we provide comprehensive, credible insights into Alabama's dynamic landscape.
