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Alabama’s manufacturing future + more new business news to know
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The automobile manufacturing industry has been a major player in Alabama for the last 20+ years, but a shift in the industry could possible affect the future of the industry here in the state.
We have an expert from the University of North Alabama’s Sanders College of Business & Technology to weigh in on the future of manufacturing in the state, and more business news from North Alabama for you here:
Manufacturing in Alabama
The additions of manufacturing plants for Mercedes, Honda, Hyundai and Toyota — plus their suppliers — have replaced many of the steel and textile manufacturing plants that thrived in the mid 1900s, but a shift in the auto industry could change how Alabama’s manufacturing industry operates.
We asked UNA Sanders COBT professor Dr. Santanu Borah about where the manufacturing industry stands right now in the state and where it may be heading.
Borah said that while the auto industry has contributed significantly to Alabama’s economy over the past several years, the advent of electric vehicles will have a tremendous impact on the industry.
“The transition towards EVs will have to start in earnest. Although many companies had committed to becoming an all-electric brand soon, companies like Mercedes-Benz are slightly delaying this transition. It seems like everyone wants to wait and see how the dynamics will play out.”
Dr. Santanu Borah, UNA Sanders College of Business & Technology
How auto manufacturers must adapt
Borah added that existing auto companies in Alabama will have to alter the product mix to have a significant amount of EVs in the market.
He pointed to the fact that Kia and Hyundai already have several models in the EV market. “We hope that Honda and Toyota will soon announce that their operations in Alabama will start to produce EVs,” he said.
The future of manufacturing in Alabama
While questions surround the auto manufacturing industry, other industries could made a strong play in Alabama, Borah said — namely semiconductors, an essential power component of computers and other electronic devices.
“The Federal government has earmarked more than $50 billion to enhance the nation’s semiconductor infrastructure. However, another stumbling block would be the availability of trained personnel for this industry.”
Dr. Santanu Borah, UNA Sanders College of Business & Technology
While semiconductor manufacturing could have a bright future in Alabama’s economy, Borah said we are still far from where we need to be in the way of trained personnel and infrastructure.
“This will require some long-term planning. TSMC, the world’s most advanced semiconductor manufacturing company has pushed back the timeline to manufacture its 4nm chips in Arizona from 2024 to 2025.
One of the primary reasons behind the delay is the availability of trained personnel.”
Dr. Santanu Borah, UNA Sanders College of Business & Technology
Borah added that semiconductors are a critical aspect of our nation’s competitiveness, and “there is no other way but to develop the next generation of workers for this industry.”
Lockheed Martin gets $756 million contract
Earlier this month, the U.S. Army awarded Lockheed Martin a $756 million contract to deliver additional capability for the nation’s ground-based hypersonic weapon system, the Long Range Hypersonic Weapon.
Under the new contract, Lockheed Martin will provide additional LRHW battery equipment, systems and software engineering support, and logistics solutions to the Army.
LRHW will introduce a new class of ultra-fast and maneuverable long-range hypersonic missiles with the ability to launch from ground mobile platforms.
Lockheed Martin delivered equipment for the first LRHW battery, referred to as Dark Eagle, to U.S. soldiers in 2021.
Unemployment rate decreases in Huntsville MSA
The state unemployment rate in April stood at 2.6 percent, a drop from 3 percent in March. The Huntsville MSA also saw a slight drop in unemployment in April, posting a 2.2 percent unemployment rate — down from 2.6 percent in March.
Here’s how the Huntsville MSA stacks up against neighboring metros:
| Huntsville | April 2024: 2.2% | March 2024: 2.6% | April 2023: 1.5% |
| Decatur | April 2024: 2.2% | March 2024: 2.5% | April 2023: 1.4% |
| Florence/Muscle Shoals | April 2024: 2.7% | March 2024: 3.1% | April 2023: 1.9% |
A look at the housing market in North Alabama
In April 2024, Huntsville home prices were up 2.4% compared to last year, selling for a median price of $340,000. Here’s how the market looks in some of our North Alabama communities:
| Huntsville | Median home price: $340,000 | Median days on the market: 52 |
| Madison | Median home price: $407,000 | Median days on the market: 50 |
| Decatur | Median home price: $241,200 | Median days on the market: 49 |
| Athens | Median home price: $317,000 | Median days on the market: 70 |
| Florence | Median home price: $200,000 | Median days on the market: 22 |
| Guntersville | Median home price: $324,000 | Median days on the market: 123 |
Look for our monthly North Alabama business news roundup this time next month, brought to you by the University of North Alabama Sanders College of Business & Technology.
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