Alabama’s Economy

The United States has encountered a major decline in the last few years causing many people to lose money and for some their jobs. Even with these hardships our country has faced in recent years, Alabama has managed to keep a fairly stable economy. The economy in Alabama is more stable than many other states are currently in the United States due to many reasons like booming resources and industries.

Alabama is a state rich in many fields such as industry, manufacturing, crops, and natural resources. Different industries include pulp and paper, chemicals, electronics, apparel, textiles, lumber and wood products, primary metals, fabricated metals, food processing, automotive tires, and many more.

The main manufacturing products of Alabama are electronics, cast iron and plastic pipe, fabricated steel products, ships, paper products, chemicals, steel, mobile homes, fabrics, poultry processing, soft drinks, furniture, and tires. All these industries really help create a stable economy for the state.

Alabama’s chief crops are cotton, sweet potatoes, peanuts, potatoes, and other vegetables. The state of Alabama also has an abundance of natural resources like coal, limestone, marble, sand, and clay. These natural resources have to be mined or extracted which means many more job opportunities that must be filled in order to take advantage of these resources. All these fields greatly contribute to create a stable economy for the state.

Alabama has more than enough resources and industry that it shares with the rest of the country. Being located on the Gulf of Mexico makes it a prime location for the growing markets in Mexico as well as South America.

Alabama is considered an important business hub for the American, Mexican, and South American markets. Alabama’s economy is also doing so well because of its low tax rate. Alabama still has the lowest taxes in the nation because of its low property and low income tax rates.

With the current state of the nation’s economy, living and working in Alabama has many wonderful benefits because of the lower taxes. With jobs being so scarce, the unemployment rate in the United States is at an all time high. Alabama’s unemployment rate is also better than the national average thanks to its numerous resources. With so many different job fields and opportunities Alabama’s economy is thriving even through the nation’s economic despair. Alabama has managed to keep its industries

Focus on Montgomery, Alabama

Montgomery, Alabama is a wonderful city for starting a new business. Its location, cityscape, climate and economy are all incentives for bringing your business to this beautiful area.  Montgomery is the capital and second most populous city in the state of Alabama.  It is located in the southeast portion of the state, in the Gulf Coastal Plain.

The opportunities for great businesses in Montgomery are countless.  In addition to housing many Alabama government agencies, Montgomery has a large military presence due to Maxwell Air Force Base, public universities such as Alabama State University, Troy University (Montgomery campus) and several private colleges and universities.

There are high-tech manufacturing companies including Hyundai Motor Manufacturing Alabama as well as cultural attractions such as the Alabama Shakespeare Festival and the Montgomery Museum of Fine Arts.

Downtown Montgomery lays along the bank of the Alabama River.  The Riverwalk is part of a plan to revamp the downtown area which will encourage business and residential developments.

Due to Montgomery‘s location along the Alabama River and extensive rail connections, Montgomery continues to be a regional hub for a wide range of businesses and industries.

One of Montgomery’s largest employers is Maxwell Air Force Base. Because of the Air Force base, colleges and universities, and all the major industries that Montgomery has to offer, it is a great place to start a new business.

You can be sure you will always have enough business with the people that live in Montgomery because of these organizations.

There are endless opportunities in retail businesses and restaurants. Montgomery draws in workers from their surrounding area because of the economy, their demographics, and their climate of short, mild winters and long, hot summers.

Montgomery’s east side is the fastest growing part of the city and has two of the largest shopping malls in the city.

The demand from the military, college students, and industrial workers alone is tremendous for good restaurants offering a wide variety of cultural delicacies, for well known retailers in clothing, electronics, furniture, and household goods, as well as many other specialty stores.  Many individuals are prospering now with their new business ventures in this state capital of Alabama.

You can find exceptional restaurants just steps from your door. From modern southern cuisine to mouth-watering seafood, the menus are endless.  Montgomery is a mecca for shoppers.

There are malls, national retail stores, flea markets and antique stores. Montgomery is a great place to begin your dream of starting that new business adventure.

Starting A Business in Alabama

The state of Alabama is a wonderful place to start a business. It is a business friendly state that welcomes new businesses.

According to the Small Business and Entrepreneurship council, Alabama places in the top four states of the best place to own a business. They measure the states on 29 criteria which include tax rates on income, government spending, and labor costs. Alabama beat out 46 other states in these criteria which is quite impressive for this business friendly state. Alabama also made the top list of the states with the lowest tax burden on small businesses.

Alabama can be a wonderful place for you if you have been considering becoming an entrepreneur. It has low overall tax rates and abundant natural resources including coal, limestone, marble, granite, cotton, and oil.  Being able to get more of your resources from the same state as your business means less cost for you and your business and will help stimulate the economy in the area in which you live.

The more you can buy closer to home, the more money you keep in your business. Alabama even has special tax incentives for new businesses and for expanding ones. Even if you have never owned a business before and are new to the process, Alabama is a wonderful place to start because of their tax and legal structure that businesses must operate under is fairly typical and does not take any business expertise.

Alabama also has a low cost of living compared to the national average making it easy to attract workers to your business in the state. A lower cost of living is always an attractive incentive for people to move to an area. The Department of Revenue can grant tax exemptions for new businesses in enterprise zones for up to five years and enterprise zone tax credits up to $2,500 per new employee hired. This is a wonderful opportunity that new businesses can be eligible for in Alabama.

Alabama also has some of the lowest property taxes in the nation in relation to residents’ income. This is also another attractive incentive for bringing more people into your area for business. With the lower state taxes a business can worry more about their products or services and less about tax issues. Alabama has much to offer a business. A business truly has the opportunity to thrive in Alabama even in our current economic times.

Impact of the Recent Tornados on Alabama Business

The devastation from the recent tornadoes that hit Alabama in April has tremendously impacted the area. These forces of nature caused many families to lose their homes, vehicles, and even loved ones.

Alabama businesses were also affected in a major way. Some businesses lost roofs, windows, merchandise, machinery, vehicles, and for an unfortunate few, everything. The majority of businesses affected by these tornadoes were small businesses and mom and pop stores. These stores which in years past have had to worry solely about competing with larger retailers now face the task of rebuilding their businesses in the midst of disaster as well.

So many businesses were damaged, or destroyed beyond repair, during these storms. Now these businesses have to find a much needed way to repair what is broken and to replace what cannot be fixed, all while continuing to maintain an income substantial enough to stay afloat. For some this has meant that they can remain open while repairing but for others they have been forced to remain closed until they can get their business back on its feet.

Some businesses must replace some or all of their merchandise, but many have to wait for their insurance agencies to assess damages and pay them in order to get what they need for a fresh start. This could cause these businesses to take even longer than expected before they are able to reopen.

Small businesses may also have to face the challenge of a stronger competition. They may lose customers to competitors that were not hit by the storms and have not had to shut down. Once they reopen they will also have to try to win these customers back.

These storms have caused an incredible amount of trouble for businesses, both small and large, in Alabama. Even the businesses that were not physically damaged have been affected. The businesses that either distribute or receive products from other businesses may be set back just as much as if they had been severely damaged from the storms. If the businesses that they use were damaged by the tornadoes, the businesses may not be able to get the products they need to run their business as well.

The businesses that need to ship their own products are not getting to send it to these companies that may be shut down, so they are losing sales, and are also stuck with their own merchandise. The effect of the tornadoes on businesses has been wide spread but all are working to get back to normal soon enough.