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A SITE SELECTION SPECIAL FEATURE FROM MAY 2003
Expanded Bonus Web Edition
ALABAMA SPOTLIGHT


Automotive Suppliers Feel
Alabama's Gravitational Pull

by JOHN W. McCURRY

T

he rivalry runs bone deep between the cities of Auburn and Tuscaloosa, Ala. While the competition obviously begins with the sports teams of Auburn University and the University of Alabama, it carries over to other aspects of life. Recently, these college towns on opposite ends of the state found themselves facing off over an industrial plum sprouting from the state's newfound status as fertile ground for automobile manufacturing.
Benteler Automotive
Benteler Automotive, a Mercedes chassis supplier, is building a $20 million plant in the Northeast Opelika Industrial Park, a site that three major car builders once considered for assembly plants.

        The gravitational pull resulting from Alabama's rise as a car building center has had suppliers to the industry pinpointing locations around the state for the past decade with Mercedes, Honda, Toyota and, most recently, Hyundai building plants in the state (see May 2003 Cover Story). As a result, suppliers to the industry are sprinkling themselves across the state. These new companies are creating thousands of jobs. A 2002 study by the Alabama Automotive Manufacturers Association (AAMA) estimates the state's automotive industry employs 27,000, a figure that is rising rapidly.
Alabama 2003:
A Demographic Profile

Population: 4,496,369
Population Growth (1990-2002): 11.28%
Households: 1,759,090
Housing Units: 1,981,873
Median Household Size: 2.7
Home Ownership: 65.5%
Median Monthly Rent: $362
Median Monthly Mortgage: $585
Per Capital Income: $22,921
Percent with College Degree: 14.7%
Total Work Force: 2,023,815
Total Crime Index (US avg.=100): 112.0
Annual Avg. Temperature: 64.6° F
Annual Spending Per Capita: $15,897
Consumer Price Index: 146.2
EASI Quality of Life Index: 104.0

Source: Development Alliance (www.developmentalliance.com)

        Another barometer of the growth of the industry is the fact that the number of AAMA members has doubled since early 2002. With major expansions at the Mercedes plant in Vance and the Honda plant in Lincoln, plus the construction of the Hyundai assembly plant in Hope Hull, the number of suppliers will continue to grow, says Bernard Schroer, AAMA executive director.
        Site Selection recently had the opportunity to visit two small, neighboring cities in eastern Alabama – Auburn and Opelika – that have landed these auxiliary manufacturers.
        The twin cities, which comprise Alabama's fastest growing metropolitan statistical area, offer many of the attributes industry site seekers want, including proximity to a major Interstate highway, the presence of a major college of engineering at Auburn University, a location less than two hours from a major international airport (Atlanta Hartsfield) and – perhaps most importantly – a tranquil, small-town quality of life.
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©2003 Conway Data, Inc. All rights reserved. SiteNet data is from many sources and not warranted to be accurate or current.