Decatur Development Blog

Expansion and Development in the Greater Decatur area

Ready for a rebound?

Posted by alalto on October 15, 2008


Is Decatur ready for a rebound in this horrid economy?
(btw, if you only wanna read about Decatur’s economy, just scroll down to the bottom)

I’m thinkin it is. Take a look at the Decatur Daily… If you take out all the stories about what’s happening nationally and you focus on what’s happening in the state, it appears that the economy in Alabama is just business as usual. That’s not to say that there isn’t a problem going on that we just can’t see. There is, we know it. National stock declines have an effect on all publically (sp?) traded companies, and there are a lot of those in Alabama.

First of all, we have been very fortunate. The bank that holds the largest amount of the banking market in Alabama (Regions Financial) has been effected by the economic slump. Forunately for our state, the Southeaster United States isn’t in as bad a shape as the rest of the country. The economic conditions going on will only magnify the Northern cities that are experience a mass exodus of their population. Which cities are these? Detroit, Pittsburgh, Cleveland and Buffalo. These were the major manufacturing centers of the 20th Century and they’ve been going through a rough time in the past few decades.

Let’s compare these northern cities to some southern ones. New Orleans, Birmingham, Mobile and to some extent Jackson. Detroit and New Orleans, major manufacturing cities, shipping ports and a hub of culture and money. That isn’t so anymore. Pittsburgh and Birmingham. THERE is where you’ll find a HUGE contrast. Read below:

Pittsburgh and Birmingham:

Here’s how I look at it, enormous manufacturing cities all go through I process that I like to call “eating/digesting themselves”. Both Pitt and Bham were huge steel producing cities, so they’re easy to compare. Birmingham has done a fantastic job and the city is in it’s last leg of the digestion process. These cities have to nearly collapse and fail before they can be reborn and turn into regions burgeoning with economic prosperity. Pittsburgh has just begun their journey down the throat. Birmingham was fortunate that when the steel industry in the U.S. began to shrink, the mills went to Pittsburgh. Why was that good? The city had to find a place to create jobs, which is where UAB came in. UAB, the largest employer in the state and a university that has a multi-billion dollar impact on the state’s economy. Yes, Pitt has some great schools, but they have not been the focus of job creation to replace the aging steel industry.

To stop comparing cities, let’s focus on why Alabama is more primed for a rebound than other states. Two main reason, IMO, slow growth (stable economy) and prime developable land.

Take a look at this map:

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