Alabama’s commercial construction industry contributed $17.2 billion to the state’s economy in 2021, supported 200,000 full-time jobs and generated over $600 million in state taxes, according to a newly released study.
The sector, which now accounts for 6.7% of Alabama’s GDP, saw a nearly 97% increase in total output between 2015 and 2021. In 2021 alone, the industry produced $9.4 billion in total output and $11.4 billion in earnings.
“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,” said Governor Kay Ivey.
“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.”
Dr. Kevian Deravi conducted the study on behalf of the Associated Builders and Contractors of Alabama. “Commercial construction in AL comprises 6.7% of Alabama’s GDP and creates 7.2% of Alabama jobs,” Deravi said.
“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.”
Jay Reed, President of the Associated Builders and Contractors, said the study demonstrates the industry’s critical role in Alabama’s economy.
“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,” Reed said.
Mark Mattox, Chairman of ABC of Alabama and Vice President of Robins & Morton and Chairman of ABC of Alabama, emphasized that the study highlights the industry’s influence beyond revenue, recognizing its contribution to the state’s economic health.
“Alabama hosts a significant construction presence, including general contractors, trade contractors, and major industry associations, many headquartered here,” Mattox said.
“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.”
Deravi estimates that the industry’s impact will exceed $20 billion by 2025, the next year the impact study will be measured.
Grayson Everett is the state and political editor for Yellowhammer News. You can follow him on X @Grayson270
