Industry Clusters
Birmingham – Hoover’s 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 doing business and entrepreneurial spirit have fostered the growth of a strong technology sector. Birmingham – Hoover 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, Hoar Construction, Dunn Investment Comapny 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, Southern Lade and Mental Floss are among several magazines published right here in the Birmingham region.
Regional Operations (Banking and Insurance)
Largest Corporate or Regional Headquarters | ||
| Rank | Corporate Presence |
Employees |
| 1 | AT&T (Regional Operations) |
5,485 |
| 2 | Regions Financial (Corporate Headquarters) |
5,000 |
| 3 | Wachovia |
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 | Health South Corporation (Corporate Headquarters) |
985 |
| Companies highlighted in blue are part of the region's financial services sector. | ||
Birmingham – Hoover 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 in the Finance, Insurance and Real Estate sector. Anchored by the corporate headquarters for Regions Financial and Protective Life Corporation, Blue Cross and Blue Shield of Alabama, the North American headquarters for BBVA (Banco Bilbao Vizcaya Argentaria) and others, the Birmingham region posses a solid location advantage for F.I.R.E. related operations.
Six of Birmingham – Hoover’s ten largest corporate or regional headquarters (ranked by number of employees) are within the banking and insurance sector. The region has a highly concentrated employment base in finance and insurance functions. According to 2007 Claritas employment statistics, the F.I.R.E. sector employs just under 48,000 or 8% of the region’s total employment base.
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 – Hoover Metropolitan area. 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.
The highly concentrated medical and life sciences workforce coupled with the region’s highly regarded entrepreneurial attributes have generated the growth of a diverse mix of biotechnology-related companies. According to the Biotechnology Association of Alabama The Birmingham region serves as the headquarters for 63 biotechnology- related companies – or 69% of all biotechnology- related companies based in Alabama. The 145,000 square-foot Innovation Depot incubater facility houses 65 high technology companies with a combined employment off more than 300.
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, OfficeMax, Sysco Food Services, Wood Fruitticher and Custom Marketing (division of Southern Living magazine) have located regional distribution facilities in the Birmingham-Hoover region over the past decade.
Six interstate highways converge near downtown Birmingham, providing 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 provide direct access to the Midwest. Birmingham's interstate network provides two-day truck transport to 70% of the U.S. metropolitan market.
The Birmingham International Airport has recently added more than 400,000 square feet to the existing air cargo facility - allowing for more growth and development of international commerce in the Birmingham region.
Automotive Manufacturing
Birmingham’s central position in Alabama and extensive interstate transportation network makes it the 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 with 19,561 employees.