North Alabama Workforce Summit highlights regional growth, workforce development, and economic challenges

North AlabamaWorks! held the 2024 North Alabama Workforce Summit at the historic Stovehouse on September 24. The all-day program provided updates, insights, and networking opportunities for the region’s workforce development community. 

State of the Workforce Report:

Stephanie McCulloch, executive director at North AlabamaWorks!, presented the “State of the Workforce Report.” 

McCulloch explained that North AlabamaWorks! is introducing new pilot programs to “inspire, prepare, and employ” Alabama’s workforce. 

The “inspire” branch of the program focuses on career exploration. The “prepare” component helps to identify career paths that need skilled workers. 

The “employ” part of the plan is anchored by a strategy to recruit members of the military and the National Guard. There are over 12,000 active-duty National Guardsmen in the state of Alabama. 

McCullough shared a two and a half minute video on careers in space, which showed the wide range of opportunities within the space industry. There are plans to develop videos for each major industry found in North Alabama. A corresponding website will be developed for each video — myfutureinspace.com is the website that accompanies the video on careers in space. 

McCullough envisions building out websites for careers in the automotive, healthcare, construction and other industries. 

The primary focus for North AlabamaWorks! for the year is to create a “one-stop shop” online where potential workers can go to gain information about jobs across a variety of industries.

North Alabama Economic Development Update:

President and CEO at North Alabama Industrial Development Association (NAIDA),  Brooks Kracke, leads an organization that has been “selling” North Alabama for the past 75 years. 

Attracting industrial business is fiercely competitive work. Representatives from NAIDA travel to other industrial regions — in Ohio, Michigan, and Tennessee — to study what is working for industrial development in each of those markets. 

North Alabama accounts for 16% of the state’s geographic area but about 23% of the state’s population.

Kracke related that, according to the most recent census data, the 12 counties that comprise North Alabama experienced 66% of the state’s total new population growth.

The explosive growth and runaway success of North Alabama has created several challenges that must now be met.

“We have a labor force participation issue, we have a power generation issue, and we have a shortage of quality industrial sites,” said Kracke. 

He is confident that each of these challenges can be addressed and that Alabama will continue to produce high dollar products. 

“We are soon to be the #2 automobile-producing state in the nation,” said Kracke. 

Honda, Hyundai, Mazda Toyota, and Mercedes-Benz all have plants in Alabama. The Mercedes-Maybach, which is manufactured in Tuscaloosa, retails for $200,000. 

“There are over $15 billion invested in EV plants within 150 miles of North Alabama,” said Kracke. “So we’re trying to go after the suppliers.” 

Solar panels, rockets, and off-road vehicles are other high value products that are made within the state. 

Kracke and his colleagues show the nation what can be built here in Alabama. 

Regional Wage Survey Trends & Insights:

Horizon Point Consulting administers an annual survey on wages and benefits in North Alabama. The firm’s talent management consultant, Jillian Massey, highlighted the most significant findings of the 2024 survey. 

Over 150 North Alabama companies participated in the survey — which collects data on compensation, retirement benefits, paid time off, wellness benefits, and other, less common, forms of workplace benefits. 

Fifty-eight of the respondents to the survey were government contractors and ninety-five were manufacturers, said Massey. 

The survey was conducted by Sensible Surveys. 

“The survey meets Federal Trade Commission and Department of Justice guidelines for safe harbor,” said Massey. 

Among other things, this means that measures are in place to ensure that participants’ identifying information is protected.

The data is saved year-over-year and is released as digital, interactive reports. 

One highlight from this year’s survey is that more businesses are implementing short shifts. Short shifts frequently allow parents to plan their work schedule around times when childcare will be available.  

Flexible arrangements, like short shifts, help to address Alabama’s low labor participation rate. 

Half of the survey participants still offer some type of remote work option.

The duration of paid family leave has lengthened since last year. Twenty-seven percent of companies that participated in the survey offer paid family leave for new parents after the birth or adoption of their child. Last year, the average leave time was five and a half weeks. This year, the average leave was seven weeks. 

Knowing what benefits are being offered by competing companies allows companies to make competitive offers to future employees and to retain high-quality employees through enticing benefits packages. 

“We can make sure that we are the best place to work. We can make sure that we’re offering a work environment and opportunities that people want — and that are consistent with what is happening in our region,” said Massey. 

While the number of participants in the survey is lower than desired, proponents say that the survey is representative of market trends. Massey encouraged audience members to have their companies participate next year. 

Collaboration, Not Competition:

Jim Page, executive vice president of MartinFed and operations chair for Launch, closed the morning session.

Launch began in 2014 when a local business leader, through the Huntsville Committee of 100, asked how counties in North Alabama could work better together. 

“Originally, the region was comprised of just three counties — Madison, Morgan, and Limestone,” said Page.

Today, Launch serves 15 counties in North Alabama and southern Tennessee. 

Entrepreneurship, land use and infrastructure, and workforce development are three primary areas targeted by Launch. 

“Regional collaboration is the way we need to be approaching everything,” said Page.

Collaborating across county lines allows North Alabama to present a united front in Montgomery and in Washington, D.C. It also ensures that organizations are not spending valuable resources duplicating the efforts of others. 

“We need to view workforce and economic development as not a zero-sum game,” said Page. “When one community has a win — has a success — that’s a win for all of us.”