Birmingham, AL – A newly released 2024 study has underscored the significant economic contributions of the commercial construction industry in Alabama. Conducted by Dr. Kevian Deravi on behalf of the Associated Builders and Contractors (ABC) of Alabama, the study reveals that the industry plays a crucial role in the state’s economy.
Governor Kay Ivey praised the findings, stating, “Commercial construction provides the economic support and distinct physical landscape that define our state today. The interconnectedness of Alabama’s economy is evident as commercial construction drives growth across multiple sectors, with contractors building everything from local schools to embassies worldwide. The impact of the business has been successful in emphasizing our workforce, and ultimately, the employment impact is equivalent to 200,000 jobs. We are fortunate and grateful to have this $17.2 billion industry in Alabama, fueling economic growth, driving employment, and fostering prosperity statewide.”
The study highlights a remarkable growth in the industry’s total impact, which increased from $15 billion in 2015 to $17.2 billion in 2021. In 2021 alone, the sector generated an output of $9.4 billion, marking a significant 97% increase from 2015 figures. This expansion reflects the industry’s robust performance and its pivotal role in Alabama’s economic development.
Dr. Kevian Deravi noted the importance of the industry’s contribution, stating, “Commercial construction in Alabama comprises 6.7% of Alabama’s GDP and creates 7.2% of Alabama jobs. Such a significant contribution—5% of a state’s economy—is a major player by any standard. In 2021 alone, the sector contributed over $600 million in state taxes, a sum that could cover the educational expenses of every student in both Jefferson and Shelby counties combined.”
The study also delves into broader economic impacts, estimating that the commercial construction industry’s activities in 2021 resulted in an output impact of $17.2 billion, an earnings impact of $11.4 billion, and an employment impact equivalent to 200,000 full-time jobs.
Jay Reed, President of the Associated Builders and Contractors, emphasized the significance of the study, saying, “This Economic Impact study is about showcasing the importance of our industry in this state. The data reveals commercial construction is a major industry and essential to Alabama’s economy. Seeing these numbers in black and white helps us discuss specifics when meeting with members, elected officials, and beyond.”
Mark Mattox, Vice President of Robins & Morton and Chairman of ABC of Alabama, added, “Alabama hosts a significant construction presence, including general contractors, trade contractors, and major industry associations, many headquartered here. This study helps us recognize and communicate the industry’s impact beyond annual revenue aggregates. While our influence is visible in Alabama’s physical landscape, we also contribute significantly to the state’s economic health. Through our studies, we track and share updates to critical indicators, helping members, the public, and lawmakers better understand construction as a powerful economic driver.”
Looking ahead, Dr. Deravi estimates that the industry’s impact will exceed $20 billion by 2025. The Associated Builders and Contractors of Alabama plan to update the study in June 2025 to reflect continued growth and developments in the sector.
