While it might be common knowledge that Boeing’s presence in Alabama has been a positive one economically, people may not realize the significance of the company’s impact on the state’s economy.
A recent study conducted by the University of Alabama’s Culverhouse College of Commerce & Business Adminitration shows that Boeing contributes more than $2.7 billion each year to Alabama’s economy.
Defining Boeing’s impact on Alabama
This year marks Boeing’s 60th year in Alabama, as the company came to Alabama with the development of the Saturn V rocket — the launch vehicle that put the legendary Apollo missions on the moon. Today, the company plays a key role in developing NASA’s powerful Space Launch System rocket, which will return astronauts to the moon and lay the groundwork for future trips beyond Earth’s orbit.
In those 60 years, the company has become a fixture in the Huntsville business community, as Boeing employs more than 3,000 people in its Huntsville headquarters.
The recent study on Boeing’s impact on Alabama revealed several interesting points, namely:
- In 2021, Boeing’s economic output reached $2.731 billion, which includes $663.2 million in earnings for 9,402 direct and indirect jobs.
- Also in 2021, earnings generated $61.5 million in tax revenue, including $35 million in state taxes and $26.5 million in local taxes.
- The company also makes significant contributions to community and workforce development in Alabama, including $2.9 million in 2021.
- The state’s revenues comprised $21.8 million individual income tax, $11.4 million sales tax, and $1.8 million property tax. Local county and municipality revenues came from $14.2 million sales tax and about $12.3 million property tax.
- The company also made in-state, non-payroll purchases and expenditures of $979.1 million bringing the company’s total in-state expenditure to approximately $1.3 billion.
- Boeing contributes significantly to community and workforce development in the state, including $2.9 million in business contributions and charitable grants in 2021.
“Boeing has been an exemplary community partner and is a model for supporting so many of our education and workforce programs over their six decades in Huntsville. Today, we are especially grateful to Boeing for their support of our pilot program with Hiring Our Heroes that will help enlisted service members transition into manufacturing careers in the Huntsville area. We believe this will grow into a workforce solution for the whole region.”Lucia Cape, senior VP of Economic Development at the Huntsville/Madison County Chamber
The future looks bright
Boeing’s impact and contribution to Huntsville and the entire state should continue as a successful partnership for years to come, judging by statements from the company and recent actions by Boeing.
To mark its 60th anniversary in the state, Boeing awarded two $60,000 grants to the Boys and Girls Club’s STEM programs and the Huntsville/Madison County Chamber Foundation’s Hiring Our Heroes program.
“Looking forward, we are committed to the continued success of our customers, the economic health of the state and contributing to the overall quality of life in the communities where we live and work.”Cindy Gruensfelder, vice president and general manager for Boeing Missile and Weapon Systems