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CEDS 2020 Annual Update

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CEDS 2020 Annual Update Comprehensive Economic Development Strategy RPCGB Mission: “To serve as a catalyst for regional leadership, cooperation, and sustainability for Blount, Chilton, Jefferson, Shelby, St. Clair, and Walker Counties.” 2020 Annual Update Regional Planning Commision of Greater Birmingham Comprehensive Economic Development Strategy Annual Update 2020 This document is posted at: https://www.rpcgb.org/comprehensive-economic-development-strategy For more information please contact: Jesslan Wilson Marley Hicks Economic Development Specialist Economic Recovery Coordinator Email: [email protected] Email: [email protected] 2 TABLE OF CONTENTS Section Page Section I: A Year in Review..................................................................................4 Employment & Growth Trends: 2019-2020........................................................4 Recent Developments 2019-2020........................................................................5 Section II:Federal Funding Awards 2019-2020...........................................6 Appalachian Regional Commission......................................................................6 Community Development Block Grants...............................................................6 Economic Development Administration..............................................................7 Section III: Growth Strategy Updates..............................................................7 Strategy 1: Empowerment and Implementation..................................................8 Strategy 2: Infrastructure.....................................................................................8 Strategy 3: Improving Access To Opportunities..................................................9 Section IV: Resiliency Initiatives......................................................................10 Economic Resiliency Strategies...........................................................................10 Opportunity Zones...............................................................................................11 Figures and Tables: Table 1: AEMA Division-Hazard Mitigation.......................................................11 3 SECTION I : A YEAR IN REVIEW The Economic Development District (EDD) staff at the Regional Planning Commission of Greater Birmingham (RPCGB) continues to work towards the goals outlined in the 2017 Comprehensive Economic Development Strategy (CEDS). This annual update summarizes the progress our region, which includes Blount, Chilton, Jefferson, Shelby, St. Clair, and Walker Counties in Central Alabama, has made towards combating area challenges and fulfilling regional needs. The entire CEDS document can be found on the RPCGB website at: https://www.dropbox.com/home/CEDS?preview=CEDS2017_Doc.pdf EMPLOYMENT & GROWTH TRENDS: 2019-2020 Alabama’s unemployment rate was at a record low in September 2019 with a rate of 2.7 percent. However, this rate has grown substantially due to the coronavirus pandemic. As of September 2020, the state had an unemployment rate of 6.6 percent, an increase of nearly four percentage points. Similarly, the unemployment rate in the Birmingham-Hoover Metropolitan Area has also experienced increasing unemployment rates over the past several months, rising from 2.4 percent in September 2019 to 6.1 percent in September 2020. In addition, the region currently has over 20,600 more unemployed individuals when compared to September 2019.1 The civilian labor force participation has decreased by nearly 5,000 people since September 2019, when the total labor force was up to nearly 560,000, a record-breaking indicator for the area.2 Every central employment sector laid out in the CEDS has experienced stagnant or declining growth in the last year. The major employment declines have been overwhelmingly concentrated in the Leisure and Hospitality Sector, which declined by nearly 19 percent since September 2019 and lost around 9,000 jobs. Other sectors have also been impacted by the loss of jobs, primarily Information, which dropped by over 15 percent employment, and Manufacturing and Logging, which declined by nearly 11 percent since 2019.3 The Transportation and Warehousing industry was the only employment sub-sector that experienced an increase in jobs, growing by 1,300 since September 2019, though the Transportation sector as a whole experienced job losses.4 Regarding the EDD six-county service area, all counties within the region have experienced higher unemployment rates when compared to September 2019. Most notably is Jefferson County, which had a 7.3 percent unemployment rate in September 2020, compared to 2.5 percent a year before. This is likely due to the concentration of job loss in the Leisure and Hospitality sector. The lowest unemployment rate increase occurred in Blount County, rising to 4.0 in September 2020 from 2.4 percent in 2019.5 1 http://www2.labor.alabama.gov/Newsletter/LMI%20Newsletter.pdf 2 https://www.birminghambusinessalliance.com/regional-news-1/jobsnumbers 3 https://www.bls.gov/regions/southeast/summary/blssummary_birmingham.pdf 4 http://www2.labor.alabama.gov/Newsletter/LMI%20Newsletter.pdf 5 http://www2.labor.alabama.gov/Newsletter/LMI%20Newsletter.pdf 4 RECENT DEVELOPMENTS: 2019-2020 During the last year, several new developments have occurred in the Birmingham-Hoover Metropolitan area despite the economic impacts of the coronavirus pandemic, which began in March 2020. Forty-six new and existing businesses expanded across the Birmingham region in 2020, creating over 1,500 jobs and attracting an estimated $895 million in capital investment.1 Existing business are expanding to new locations throughout the region, and new companies are locating to the greater Birmingham area at impressive rates. However, manufacturing has continued to serve as a foundational piece of the Birmingham region’s economy, as a large portion of new and expanding businesses have been connected to the manufacturing sector. Two notable developments within the region are within the City of Bessemer, located 15 miles southwest of the City of Birmingham. This city was selected as the site for a new Carvana distribution facility, and reports suggest this automobile distributor will create at least 450 jobs, with average salaries exceeding $35,000, and will generate over $46 million in capital investment.2 Bessemer was also selected as the location for the development of a bulk distribution center for Lowe’s, and this facility will replenish supplies for nearly 115 stores across the southeast. It is expected that this new facility will create between 150-200 new jobs for the area.3 However, the recent economic fluctuations caused by the coronavirus pandemic have negatively impacted employment in industry sectors throughout the region. Total non-farming employment for the Birmingham region has decreased by workers than any other metropolitan area in the state, declining by over 17,000 workers between October 2019 to October 2020. Service providing employment sectors comprised a large majority of the reduction, declining by 16,700 workers since October 2019. This loss was highly concentrated in the Leisure and Hospitality industry, which lost an estimated 9,000 employees over the course of the pandemic. This decrease mainly occurred in the Food Service and Drinking Places sub-sector, which declined by 6,000 workers. The Wholesale and Retail Trade industries were also impacted by labor force reductions due to the pandemic, declining by nearly 5,000 workers since October 2019. Though some jobs have been recovered in recent months, the impacts on employment in these sectors will likely continue to be felt in the months to come. 1 https://www.birminghambusinessalliance.com/2019-growth-report 2 https://www.al.com/business/2019/11/carvana-to-build-40-million-bessemer-distribution-center-to-hire-450.html 3 https://www.bizjournals.com/birmingham/news/2020/11/04/lowe-s-confirms-new-bessemer-distribution-facility.html 5 SECTION II: FEDERAL FUNDING AWARDS 2019-2020 During the last year, the six-county region has sought grant funding from several federal funding sources. Below is a list of known funding applications with a description of its proposed project. APPALACHIAN REGIONAL COMMISSION These grants were funded in fiscal year 2019; fiscal year 2020 grants have not been announced yet. • Expansion of the Welding Technology Program to Shelby-Hoover Campus, Jefferson State Community College: $280,003 • Building STEAM Oneonta Middle School STEAM Lab Initiative, Oneonta Foundation for Educational Resources, $100,000 • UAB Telehealth Outreach, The Board of Trustees of the University of Alabama at Birmingham, $198,730 COMMUNITY DEVELOPMENT BLOCK GRANTS The following applications were funded for fiscal year 2019: LARGE CITY APPLICATIONS: • City of Oneonta, Blount County: $450,000 for Sewer Improvement Project • City of Pell City, St. Clair County: $450,000 for Sewer Improvement Project • City of Clanton, Chilton County: 239,400 for Demolition COUNTY APPLICATIONS: • Blount County: $350,000 for Street Improvements Project COMMUNITY ENHANCEMENT: • Town of Steele, Blount County: $189,977 for Clearance/Demolition • City of Clanton, Chilton County: $239,400 for Clearance/Demolition The following applications have been submitted for fiscal year 2020 funding and are awaiting funding announcement: SMALL CITY APPLICATIONS: • Town of Susan Moore, Blount County: $350,000 for Water and Street Improvements Project 6 ECONOMIC DEVELOPMENT ADMINISTRATION This list includes all requests for
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