Alabama Governor Kay Ivey has announced the development of a new strategic economic growth plan for the state. The plan, which aims to replace the current economic development plan called Accelerate Alabama, will be developed in partnership with consulting firm McKinsey & Company, Troy University, and Alabama A&M University. The team, led by Commerce Secretary Ellen McNair, has set an ambitious deadline of October 1 to complete the plan.
The new economic growth plan will focus on several key areas, including elevating human capital, spurring entrepreneurship, energizing talent attraction, and leveraging the state's outdoor recreation infrastructure. McKinsey & Company will play a crucial role in the plan's development by analyzing target sectors and developing strategies. Troy University and Alabama A&M University will also contribute to the plan by organizing focus groups and preparing data.
The current economic development plan, Accelerate Alabama, was adopted in 2012 and last updated in 2017. Since its implementation, the plan has resulted in over $67 billion in new capital investment and nearly 170,000 job commitments for the state. However, Governor Ivey believes that it is time for a new plan to address the changing economic landscape and capitalize on new opportunities for growth.
Alabama business leaders have expressed concerns about the state of the economy, citing challenges such as inflation, supply chain disruptions, and labor shortages. Rising costs for raw materials and transportation are also putting pressure on profit margins. The overall forecast for the U.S. economy has had a negative impact on the Alabama Business Confidence Index (ABCI), further contributing to business leaders' caution. Despite these challenges, business leaders remain hopeful that the economy will stabilize and recover in the coming months.
During the most recent legislative session, the Alabama legislature passed a package of bills called 'Working for Alabama' aimed at addressing several real problems facing Alabama's economy. The package includes six ambitious bills that were all passed within 50 days of their introduction. One of the primary goals of the package is to solve Alabama's low labor force participation rate, which ranks 47th in the nation. Lt. Gov. Will Ainsworth led a commission to identify the problems causing the low workforce participation rate and develop solutions. The solutions in the package include streamlining workforce development strategies, creating accountability, and involving employers in decision-making. The package also includes a childcare tax credit. The legislative session was contentious, but thanks to Ainsworth's leadership, a coalition of elected leaders from both parties and the business community came together to pass the package. The 'Working for Alabama' program was instigated by Ainsworth's efforts.
Sources: Alabama Daily News[90e3f303], Alabama Public Radio[a5324bc7], WVUA 23 Digital[43421acf], BusinessDesk[f82575d8], Dothan Eagle[05bdbd44], Cleburne Times-Review[7de69d8f]