Industry Clusters
The Metropolitan Birmingham economy is supported by a diverse mixture of corporate and regional headquarters; health services and biotechnology research; distribution and automotive manufacturing. The economy’s varied strengths coupled with the region’s low cost of living and entrepreneurial spirit have fostered the growth of a strong technology sector. Metropolitan Birmingham is the corporate or regional headquarters to a dozen technology-related companies each having more than 100 employees, including: SunGard, Command Alkon, Emageon, Integrated Medical Systems and Imaging Business Machines. Moreover, several major construction companies call the Birmingham region home, including: BL Harbert International, BE&K, Brasfield & Gorrie and Brice Building Company. The Birmingham region is also one of the largest lifestyle publishing centers in the United States. Southern Living, Southern Accents, Health, Coastal Living, Mental Floss are among several magazines published in right here in the Birmingham region.
Regional Operations (Banking and Insurance)
| Rank | Corporate Presence | Employees |
| 1 | AT&T (Regional Operations) | 5,485 |
| 2 | Regions Financial (Corporate Headquarters) | 5,000 |
| 3 | Wachovia (Regional Headquarters) | 3,094 |
| 4 | Blue Cross Blue shield of Alabama (Corporate Headquarters) | 3,000 |
| 5 | BBVA (North American Headquarters) | 2,696 |
| 6 | Social Security Administration (Regional Headquarters) | 1,800 |
| 7 | Southern Progress Corporation (Subsidiary of Time Warner) | 1,400 |
| 8 | State Farm Insurance (Regional Headquarters) | 1,400 |
| 9 | Protective Life Corporation (Corporate Headquarters) | 1,200 |
| 10 | HealthSouth Corporation (Corporate Headquarters) | 985 |
Metropolitan Birmingham is among the largest Southeastern locations for corporate headquarters and regional corporate operation functions. The region serves as the headquarters for a diverse cluster of companies representing: finance and insurance, healthcare management, utilities, construction and natural resource. However, the highest corporate employment concentrations are found within the F.I.R.E. (Finance, Insurance and Real Estate) sector. Anchored by the corporate headquarters for Regions Financial, the North American headquarters for BBVA (Banco Bilbao Vizcaya Argentaria) and several insurance companies, the Birmingham region posses a solid location advantage for F.I.R.E. related operations.
Medical and Life Sciences
| 2007 Largest Biotechnology Related Employers | ||
| Rank | Company | Employees |
| 1 | Southern Research (Biotechnology) | 598 |
| 2 | Caremark (Pharmaceutical Distribution) | 515 |
| 3 | Integrated Medical Systems (Device) | 203 |
| 4 | Emageon (Bioinformatics) | 200 |
| 5 | Atherotech (Diagnostic) | 180 |
| 6 | Lab Corp. (Biotechnology) | 100 |
| 7 | Electronic Healthcare Systems (Bioinformatics) | 100 |
| 8 | BioHorizons Implant Systems (Device) | 88 |
| 9 | Athlon Pharmaceuticals (Pharmaceuticals) | 70 |
| 10 | Cebert Pharmaceuticals (Pharmaceuticals) | 85 |
| 11 | SurModics (Pharmaceuticals) | 80 |
The University of Alabama Hospital anchors the Academic Health Center district located within the 85-block UAB campus in downtown Birmingham. For the 16th consecutive year, U.S. News and World Report ranked the hospital among America’s best – the only Alabama hospital on this prestigious list. Nineteen hospitals serve the seven-county Birmingham region. According to 2007 Claritas employment statistics, the seven-county region’s Health Services component employs more than 76,000 and encompasses more than 12% of the regions total employment base.
Birmingham’s stature as a major recipient of biotechnology based research grants position the region to attract leading scientist and grow biotechnology-related businesses. Serving as a major impetus for biotechnology growth in the Birmingham region, the University of Alabama School of Medicine was the recipient of $435.7-million in research-based grants and contract awards during 2007 and the school consistently ranks among the top-twenty recipients of federal NIH (National Institutes of Health) allocations in the United States. Moreover, Birmingham based Southern Research Institute has established a platform for the growth of biotechnology companies in the region. In 2005, Southern Research Institute received $32,811,100 in NIH allocations, ranking it 16th among all U.S. research institutes.
Distribution
The region’s comprehensive interstate transportation network and central proximity in the Southeastern United States have created logistical advantages for the location of major distribution facilities. Home Depot, Office Max, Sysco Food Services, Wood Fruitticher and Custom Marketing (division of Southern Living magazine) have located regional distribution facilities in the Birmingham region over the past decade.
Six interstate axis converge near downtown Birmingham, providing interstate access to virtually every region of the United States. The new Interstate 22 is currently completed to just six miles west of where it will intersect Interstate 65 in northern Birmingham. Scheduled for completion by 2011, Interstate 22 will complete Birmingham radial interstate network by providing direct access to Memphis.
Automotive Manufacturing
Birmingham’s central position in Alabama and extensive interstate transportation network makes it the economic core of Alabama’s growing automotive manufacturing sector. Mercedes Benz U.S. International and Honda Manufacturing of Alabama are within a forty-mile radius of downtown Birmingham. Hyundai Motor Manufacturing of Alabama, International Diesel and Toyota Motor Manufacturing Alabama are within an 85-mile radius of downtown Birmingham via direct interstate access.
Between 2005 and 2007, the number of automotive plants in Alabama has increased by more than 8% - from 263 in 2005 to 285 in 2007. Approximately 39% (or 108) of Alabama’s automotive plants are clustered in the Birmingham – Hoover Metropolitan Area workforce recruitment region. Between 2005 and 2007, automotive manufacturing employment in Alabama has increased 8% - increasing from 44,834 in 2005 to 48,457 in 2007. According to the AAMA (Alabama Automotive manufacturing Association) the manufacturing region that encompasses much of metropolitan Birmingham and central Alabama encompasses 40% of Alabama’s total automotive manufacturing employment at 19, 561 employees.
Industry Cluster Source: Michael Shattuck, BBA (8/09)
