Economic Contributions of Commercial Construction in Alabama Reached $17.2 Billion in 2021

Birmingham, AL – Economic Contributions of Commercial Construction Unveiled

A newly published study has brought to light the **crucial role** the commercial construction industry plays in Alabama’s economy, emphasizing its substantial contributions to job creation and state revenue. Conducted by Dr. Kevian Deravi on behalf of the Associated Builders and Contractors (ABC) of Alabama, the study sheds light on the sector’s impressive growth over recent years.

Significant Economic Impact

According to Dr. Deravi, the commercial construction industry in Alabama is not just a business; it is a powerhouse that significantly affects the state’s financial landscape. The industry saw a remarkable increase in impact, growing from $15 billion in 2015 to an impressive $17.2 billion in 2021. This represents a 15% growth in just six years, highlighting the sector’s strength and its vital role in Alabama’s economic development.

In 2021 alone, the commercial construction sector generated an output of $9.4 billion, which marks a staggering 97% increase from 2015 figures. Such growth is reflective of the sector’s robust performance, as it is intertwined with various facets of the state’s economy.

Job Creation and Workforce Impact

Perhaps one of the most striking findings of the study is the employment impact of the commercial construction industry. It is responsible for an estimated 200,000 full-time jobs, showcasing how vital the sector is in providing *employment opportunities across the state*.

Governor Kay Ivey echoed these sentiments, stating, “Commercial construction provides the economic support and distinct physical landscape that defines our state today.” She noted that the interconnectedness of Alabama’s economy is evident as commercial construction fuels growth across numerous sectors.

Contribution to State Taxes

Furthermore, the study reveals that the construction industry contributed over $600 million in state taxes in 2021. This impressive sum is notable as it could cover the educational expenses of every student in both Jefferson and Shelby counties combined, emphasizing the sector’s positive ripple effects on local communities.

Long-term Perspectives

Dr. Deravi highlighted that commercial construction constitutes approximately 6.7% of Alabama’s GDP and produces 7.2% of the state’s jobs. Such significant contributions mark the industry as a key player in Alabama’s economic framework.

Mark Mattox, Vice President of Robins & Morton and Chairman of ABC of Alabama, reinforced the idea that the study serves to display the far-reaching impact of the industry. Mattox stated, “This study helps us recognize and communicate the industry’s impact beyond annual revenue aggregates.” He emphasized the necessity for ongoing tracking of economic indicators related to construction to showcase its influence as a powerful economic driver.

Looking Ahead

As the industry continues to grow, Dr. Deravi predicts that its impact could exceed $20 billion by 2025. To keep pace with these developments, the Associated Builders and Contractors of Alabama are planning to conduct an updated study in June 2025. This will help stakeholders understand the trends and advances in the commercial construction sector.

The findings of this study highlight the **vital importance** of the commercial construction industry in not only shaping Alabama’s physical landscape but also driving its economic future. With substantial contributions to job creation, state tax revenues, and the overall economy, it is clear that this sector plays a significant role in the growth and prosperity of the state.


Author: HERE Birmingham

HERE Birmingham

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