Impact on state and St. Clair
continues upward climb
Story and Photos by Carol Pappas
Photos contributed from Honda
Its Alabama beginnings came in a code word: “Bingo.” That was the name of the secret project that brought five counties together in an unparalleled partnership to locate Honda Manufacturing of Alabama in the tiny town of Lincoln.
While the leaders of any one of those counties would have celebrated its location within their own borders, they realized the potential impact on the entire region – their constituencies readily included.
So, they went to work to lure the Japanese automobile manufacturer to a land where ‘y’all’ eventually became ‘us.’ And 20 years later, that impact those counties dreamed of is unmistakably real.
In a five-county ‘thank you’ tour of Calhoun, Etowah, Jefferson, St. Clair and Talladega counties, Honda Manufacturing of Alabama and the Economic Development Partnership of Alabama unveiled the latest economic impact results from the plant itself and its Key Tier 1 Suppliers.
By the numbers, that’s a $12 billion annual economic impact on Alabama, providing 45,000 jobs and amounting to 5.4 percent of the Gross State Product of Alabama.
How does that stack up in St. Clair County? Just add it up: 2,069 total jobs generated; $145.4 million in total earnings and $2.8 million in local sales taxes.
“There is no doubt about Honda’s impact on St. Clair County,” said St. Clair Economic Development Council Executive Director Don Smith. He points to real life examples, like the Honda suppliers who have expanded – and expanded again.
“The Honda location has been an incredible project for this area but not just in the thousands of high paying jobs or the billions in economic impact,” Smith added. “The project brought the communities in this region together and showed the impact of regional cooperation. The success of this project helped provide the leaders in St. Clair County the blueprint for the EDC on communities working together countywide for the benefit of all their citizens. It’s been a great success story.”
The employment figures underscore the successes felt in St. Clair County. Honda employs more than 600 St. Clair Countians, making it the largest employer in the county that isn’t actually located in the county.
Jason Goodgame, vice president of Goodgame Co., tells his own real-life example. Goodgame Co. is now in the top 20 of largest general contractors in Alabama. He once likened it to the centerpiece of a commercial for Honda. “Honda took a small, family-owned company and made us into what we are today.”
Similar success stories have played out all over the region and state, said Steve Sewell, executive vice president of EDPA, who worked with efforts to bring Honda to Alabama from the beginning.
Projections back then versus reality now:
6,800 jobs projected statewide – 45,000 actual jobs created so far
$186 million payroll projected – $1.3 billion in actual earnings to Alabama households
$2.1 billion direct and indirect impact income – $12 billion actual impact
Bringing the numbers closer to home, Sewell cited projections versus reality for St. Clair County:
760 jobs forecast – more than 2,000 filled
$5.9 million in earnings predicted – more than $145 million earned
$164,000 expected in new tax revenue – more than $2.8 million collected
Eighteen years after production began, Sewell said, “It has been a phenomenal success story beyond anyone’s expectations.”
