Health care was hot and cold. Building was big and bold. Companies were bought and sold. Such was Alabama business in 2024, a year that saw major new projects announced, changes in some high-profile leadership positions and, as always, billions of dollars in government contracts for Alabama companies. Here’s Alabama’s business year in review, taken mostly from the pages of Business Alabama. These highlights just scratch the surface of a year that saw some lofty highs and frustrating lows.
HEALTH CARE
More than in other recent years, 2024 saw health care front and center with some major merging. On the flip side, rural hospitals continued to suffer, with closures that left some areas without convenient care.
In August, Orlando Health bought Tenet’s 70% stake in the five-hospital Baptist Health System for $910 million.
Ascension St. Vincent’s Health System officially became UAB St. Vincent’s in November, following the University of Alabama at Birmingham’s purchase of the system for $450 million. That purchase came on the heels of Ascension selling Providence Hospital in Mobile to the University of South Alabama Health System for $85 million in 2023.
In January, Huntsville Hospital Health System announced it was acquiring the DeKalb Regional Medical Center in Fort Payne. That acquisition came after others the Huntsville group has made in North Alabama.
The nearly new Thomasville Regional Medical Center closed its doors, with officials sighting staffing shortages for the hospital closing “until further notice.” Stringfellow Memorial Hospital in Anniston closed in July.
The University of South Alabama broke ground in December 2023 on a new $200 million medical school building. The Frederick P. Whiddon College of Medicine building is set to open in 2026. BL Harbert International, based in Birmingham, is the builder.
Birmingham-based Medical Properties Trust raised a lot of cash and dealt with some financially troubled tenants in 2024. The company’s largest tenant, Steward Health Care, filed for bankruptcy in May (and MPT severed ties with the company). Cash was raised through transactions such as MPT’s sale of 11 freestanding health care facilities in Colorado to the University of Colorado Health for $80 million and November’s $200 million sale of Prospect’s managed care business to Astrana Health.
BUILDING BIGGER AND ECONOMIC DEVELOPMENT
From North Alabama to South and points in between, major projects were announced and completed, and many existing companies expanded in a big way. Here are some investing $100 million or more:
A $2.2 billion mixed-use development in Mooresville was announced in May. Plans have it sitting on 411 acres at I-65 and I-565.
Arizona-based First Solar Inc. opened its $1.1 billion thin-film solar manufacturing plant in Lawrence County in September.
In early November, J.M. Smucker, the food seller based in Ohio, opened a $1.1 billion plant in McCalla. The facility will manufacture the company’s Uncrustables line.
Meta, the parent company of Facebook, announced plans in May for an $800 million data center to be built in Montgomery. Meta already has a $1.5 billion data center in Huntsville.
Coca-Cola Bottling Company United Inc. broke ground in June on a $330 million plant and headquarters in Birmingham’s Kingston community. The facility includes an office complex and warehouse.
Mobile shipbuilder Austal USA broke ground in July on an additional final assembly line that should add 1,000 employees. The new line, which includes a shiplift system, is expected to be operational in 2026. Just a couple of months later, the company broke ground for another facility to make submarine modules.
Mobile Mayor Sandy Stimpson in March announced plans for a $300 million entertainment district, including an arena, to replace the city’s 60-year-old Civic Center. That followed the announcement in late 2023 of a planned $100 million development along the city’s waterfront. River Walk Plaza will include a hotel, residences, office space, retail and restaurants.
In late 2023, Nucor Steel Tuscaloosa announced a $280 million expansion of its plate mill, a project scheduled for completion in 2027.
Meridiam broke ground in March on a $230 million fiber infrastructure project in Selma. It will bring broadband access to more than 300 miles of Alabama’s Black Belt.
Norfolk Southern Corp. is investing more than $200 million in a key rail line in Alabama. The improvements will come on the 3B Corridor, which connects markets in northern and central Alabama to the Port of Mobile.
The University of Alabama at Birmingham in June broke ground on a $190 million building to house the Biomedical Research and Psychology Building.
In June, South Korea-based Samkee Corp. opened its first U.S. auto parts production facility in the Tuskegee Commerce Park. The $128 million plant is a Tier 1 supplier to Hyundai Motor Manufacturing Alabama in Montgomery.
Two Rivers Lumber Co. said in April it plans a second operation in Alabama, a $115 million sawmill in Coosa County.
Raytheon broke ground in April on a $115 million expansion of its Missile Integration Facility in Huntsville.
Auto supplier Iljin announced in September a nearly $100 million investment in a new operation in Auburn. The new plant for the company that manufactures industrial bearings and chassis is expected to employ 160 people.
CHANGES AT THE TOP
A number of CEOs and other executives came and went in 2024. Here are some of the most notable:
At the end of 2023, Greg Canfield stepped down as secretary of the Alabama Department of Commerce after 12 years. Ellen McNair, formerly with the Montgomery Area Chamber of Commerce, replaced him.
University of Alabama football Coach Nick Saban retired in January after 17 seasons at the Capstone.
Chris Susock was named president and CEO of Hyundai Motor Manufacturing Alabama in January.
Joseph Pelfrey was named director of NASA’s Marshall Space Flight Center in Huntsville in February.
Josh Snow was named CEO of USA Health University Hospital in Mobile in January.
In April, Finis St. John IV stepped down as chancellor of the University of Alabama System to lead the new Shelby Institute for Policy and Leadership at UA. Sid Trant was named his interim successor.
Founding Plant President Masashi Aihara stepped down at Mazda Toyota Manufacturing in Madison in March and was replaced by Mitsunobu Mukaida.
Federico Kochlowski was named president and CEO of Mercedes-Benz U.S. International in April.
Michelle Kruger, interim president of shipbuilder Austal USA since the resignation of Rusty Murdaugh, was named president in April.
CONTRACTS GALORE
Alabama is always a player when it comes to defense contracts, but some stand out among the rest:
MartinFed Consulting, based in Huntsville, won a whopping $8 billion contract in June to procure IT supplies and support for the FBI.
In August, Mobile-based Austal USA began work on an Offshore Patrol Cutter, the first under a contract that has a value of up to $3.3 billion. In September, the company also was awarded a $450 million contract from General Dynamics Electric Boat to expand its submarine module construction capabilities.
Lockheed Martin in May received a $756 million contract to support the Long Range Hypersonic Weapon System. The contract includes the company’s Huntsville and Courtland facilities.
The U.S. Department of Transportation awarded a $550 million grant in July from the Bridge Investment Program to the Mobile River bridge and bayway project.
Huntsville-based Teledyne Brown Engineering was awarded a $476 million contract in September to provide Earth observation data and related services for NASA.
Boeing received a $460 million Missile Defense Agency contract in May for systems engineering, work that is being performed in Huntsville.
Four Alabama companies were among 12 selected by NASA in March for a $478 million contract involving the International Space Station: Axient Corp., Tec-Masters and Teledyne Brown, all in Huntsville; and the University of Alabama at Birmingham.
Huntsville-based VetTech LLC in June won a $348 million contract to provide services for the Missile Defense Agency.
AND THERE’S MORE
Some other notable Alabama business news from 2024:
Japan’s Nippon Steel announced it wanted to purchase U.S. Steel, the Pittsburgh-based steel producer with a long history in Birmingham, for $14.1 billion, but the deal hadn’t closed as of November.
Birmingham-Southern College ceased operations on May 31 after an 18-month effort to obtain bridge funding to put the 168-year-old college on sound financial ground. Miles College put in a bid to purchase the college, but time ran out on the deal.
Birmingham retailer Hibbett was acquired by UK retailer JD Sports Fashion. The price tag? $1.1 billion.
Airbus in August marked the completion of its 500th commercial aircraft in Mobile. In September, Huntsville-based Toyota Alabama celebrated the 10 millionth engine assembled at its plant.
In January, a rocket built by United Launch Alliance in Decatur powered a private moon lander carrying two payloads to the moon. In June, a ULA rocket lifted Boeing’s Starliner and two astronauts to the International Space Station.
The Alabama Department of Commerce in 2024 announced that Alabama companies exported $27.4 billion in goods and services in 2023, an annual record.
Alabama auto exports jumped to $11.2 billion in 2023, moving the state ahead of South Carolina to lead the nation in auto exports.
In May, employees at Mercedes-Benz U.S. International in Vance voted against joining the United Auto Workers union.
Alec Harvey is executive editor of Business Alabama, based in the Birmingham office.
This article appears in the December 2024 issue of Business Alabama.
