The commercial construction industry in Alabama is big business-really big. According to a 2013 report by Auburn University at Montgomery economics professor Dr. Keivan Deravi, the industry's economic impact on Alabama reaches nearly $10 billion annually. Commercial construction accounts for a whopping 41% of the state's economy, making it the largest industry in the state.

In addition, the report states that 56% of Alabama's jobs are in the construction industry with an annual payroll of $7 billion. The state's tax base is also positively impacted with a combined contribution of $403.7 million in various taxes each year. Alabama's construction industry taxes also provide $402 million to the Education Trust Fund. The end result? Alabama's commercial construction industry is a major factor to the state's economy through the tax and employment base alone.

Real estate development, in particular, is an area that the Alabama construction industry gains national attention. According to a 2013 report by the National Association of Industrial and Office Properties (NAIOP) Research Foundation, Alabama ranked ninth in the nation in industrial construction spending last year.  

The report also noted that the increased spending in Alabama industrial construction also positively affected the employment rate in the industrial, retail, entertainment, office and warehouse categories. The economic impact of commercial real estate development in Alabama totaled $6.81 billion and over 33,000 jobs. Nationally, the economic impact increased 24.06% over the previous year.

So what's in store for Alabama's construction industry?
The Center for Business and Economic Research (CBER) at the University of Alabama expects a continued gradual improvement in the state's economic growth this year of 1.5%, while others place it as high as 2.4%. That amount, though small, is better than the 0.8% increase in 2013. Does this mean that the state's economy is rebounding? Yes, slowly and steadily. The Alabama Business Confidence Index increased 2.6 points higher than last year. Meanwhile, the state's economic index continues to remain above the national average. The construction industry in Alabama is at its highest employment level in six years. Sales, profits and capital investments are all also expected to show at least moderate improvements this year.

These numbers, along with a planned 20% increase in new multi-unit housing development for the state, show that the industry is not slowing down anytime soon. The demand for apartments has risen in recent years in areas such as Birmingham-Hoover, Huntsville, Tuscaloosa and Auburn-Opelika. More than 2,000 permits have been issued for 2014, twice as many as last year.

Even with the positive increases in the construction industry, a lack of qualified laborers remains a challenge in many parts of the country, including Alabama. However, with the recent opening of the AIDT Alabama Workforce Training Center in Birmingham, students are being trained with industry-specific skills to fill these much needed positions. As part of Governor Bentley's College and Career Ready Task Force, the Alabama Workforce Training Center will provide certificate training and qualified graduates ready to immediately enter the workforce-providing yet another boost to the state's construction industry.

Cahaba Tractor takes great pride in knowing that Kubota's high quality equipment continues to set the standard in the construction industry, both here in Alabama and across the nation. Kubota compact excavators and track loaders, wheel loaders, tractor/loader/backhoes and a wide variety of landscaping mowers and tractors are an essential part of any construction job. That same equipment is available to all of our customers. Whether working on a major construction site or in your own back yard, Cahaba Tractor has everything you need to get the job done.