Many of the 125 companies visited by the Birmingham Business Alliance’s Business Retention and Expansion program announced expansions, like Nucor Steel, pictured above. In total, the company will add over $9 million in capital investment.
Sales and market share grew for Birmingham companies in 2019, according to data obtained by the Birmingham Business Alliance’s (BBA) Business Retention and Expansion (BRE) program.
The BRE program builds relationships with companies across the Birmingham region – ranging from startups to the region’s largest employers – and provides onsite, one-on-one visits from the BBA’s economic development staff to understand needs, challenges and opportunities to gain insight and data on business climate and trends, as well as connect them with resources to grow.
Favorable market conditions and regulatory and governmental reforms made the economy more business-friendly in 2019, which encouraged companies to make the needed investments to grow business, said Mark Brown, vice president of business retention and expansion for the BBA.
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Last year, 81 percent of the 125 companies visited by the BRE team reported sales and market share were up – an 8 percent climb from the 73 percent that reported growth in 2018. Only 1 percent of companies reported a decline in sales and market share (down from 4 percent in 2018), with the remaining 18 percent reporting performance as stable.
BRE data also found that $832 million in capital investment was announced by existing companies in the region – a steep rise from the $190 million announced in 2018.
“Business retention and expansion initiatives are foundational and are the first step in developing a community or region,” said Brown. “Strong business retention and expansion programs are team-based and provide a framework for success by utilizing our economic development allies and resource partners for a common purpose in supporting a company’s productivity and profitability. The insights we gain through our efforts provide an understanding for future existing business growth and enables our region’s organic entrepreneurial development and business recruitment opportunities.”
In 2019, BBA staff visited 125 companies representing over 15,500 local employees. Here are some key data points uncovered from BRE visits in 2019:
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There were 993 new jobs announced by existing companies in the region.
In 2019, 53 percent of companies visited indicated they planned to add new jobs in 2020, and 25 percent of companies visited said they planned to expand.
Technology, transportation, advanced manufacturing, health care and education/workforce development were identified as local business drivers in the next five years.
41 percent of companies surveyed said workforce was an urgent issue that requires immediate attention. With the Birmingham region’s low unemployment rate and new technologies that are being deployed in core traded sectors, it is important to continue focusing on education, talent recruitment, and workforce training and development, Brown said.
31 percent of companies said inadequate supply of qualified job applicants is the No. 1 barrier to growth in their company.
Lack of skills, education and work ethic are the top three workforce issues and concerns.
Since 2012 – when the BRE program began – the BBA staff has completed over 1,100 visits and has seen existing companies announce over 16,000 jobs and $3.9 billion in capital investment.
Click here to learn more about the BRE program and click here to contact Mark Brown.