Spotlight on Montgomery County: Economic Engines

Hyundai and automotive suppliers, military installations, technology, distribution and state government are key factors in the economy of Montgomery County

Hyundai Mobis broke ground in October on a $52 million expansion.

Hyundai Motor Manufacturing / Automotive Suppliers

With a workforce of 4,200 employees, Hyundai Motor Manufacturing Alabama (HMMA) stands as Montgomery County’s largest manufacturing employer. An independent operation of the Seoul-based Hyundai Motor Co., HMMA produces the Hyundai Tucson, Santa Fe and Santa Fe Hybrid SUVs, as well as the company’s first-ever Santa Cruz Sport Adventure Vehicle.

In 2023, the facility expanded its production lineup with the launch of the Genesis Electrified GV70 SUV in February and the gas-powered Genesis GV70 SUV in May. The Genesis Electrified GV70 is particularly notable as the first Genesis model to be assembled in the United States and outside of South Korea.

In August 2023, HMMA announced a $290 million investment to expand its production line. Of this, $190 million was allocated to prepare for the next generation of the highly popular Santa Fe SUV, marking its first full model update since 2018. Assembly of the new model began in January 2024. The remaining $100 million will support the continued production of the Tucson SUV and the Santa Cruz Sport Adventure Vehicle.

HMMA has the capacity to produce 390,000 vehicles annually, and approximately 40% of Hyundai vehicles sold in the United States are manufactured at the Montgomery facility. The company spends approximately $6.3 billion annually to support its manufacturing operation, $3.1 billion of which is spent with Alabama-based businesses. The company supports 14,436 direct and indirect jobs in Alabama and has a total economic impact of approximately $4.8 billion per year.

Hyundai MOBIS, another top manufacturing employer in the county, is the largest Tier 1 supplier to HMMA and Kia Motor Manufacturing Georgia. In October 2024, the company broke ground on a $52 million, 460,000-square-foot facility in Montgomery designed to support the aftermarket parts needs for Hyundai’s and Kia’s national dealer networks.

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Additional automotive suppliers in Montgomery County include Mountain Top Industries, DAS North America, Gerhardi and Lear Corporation-Montgomery.

Military Installations and Missions

In 2023 the Association of Defense Communities and USAA recognized the Montgomery River Region as a Great American Defense Community, placing it among a select few other communities nationwide that are celebrated for their support of military personnel and their families.

Montgomery County is home to Maxwell Air Force Base and Gunter Annex. Maxwell is home to the 42nd Air Base Wing and more than 14,500 active duty, reserve, civilian and contractor personnel that have a significant economic impact on the region. Gunter Annex houses the Air Force Business and Enterprise Systems Directorate, the 26th Network Operations Squadron and the Defense Information Systems Agency.

In 2024, MH-139A Grey Wolf helicopters touched down at Maxwell AFB, ushering in a new chapter in the base’s operational history. The MH-139’s Formal Training Unit trains aircrew in providing security and support for the nation’s intercontinental ballistic missile fields. The arrival of the MH-139A Grey Wolf will boost the local economy with a projected increase in economic impact on the Montgomery-River Region from $55 million to approximately $75 million annually.

In August 2024, the Department of Air Force Information Technology and Cyberpower Conference returned to Montgomery, signaling the area’s growing influence as a hub for cybersecurity and IT innovation and strengthening its reputation as a central player in the nation’s defense and technology system.

Air University is headquartered at Maxwell AFB and provides a full range of Air Force education from pre-commissioning programs for new officers to graduate programs in specialized military disciplines to all levels of professional military education. More than 25,000 resident and 49,000 non-resident officers, enlisted and civilian personnel graduate from Air University each year.

The Alabama National Guard is headquartered in Montgomery and consists of two major commands: Army National Guard and Air National Guard.

The 187th Fighter Wing, based at Dannelly Field in Montgomery, is an Air National Guard unit known as the Red Tails. The wing traces its lineage to the legendary Tuskegee Airmen and continues their tradition of distinction in air combat operations. In 2024, the unit celebrated a historic milestone with the arrival of the first of an expected 20 F-35 Lightning II aircraft, marking the beginning of a new era in its mission capabilities. This transition underscores the 187 FW’s critical role in advancing U.S. airpower and national security.

In total, Montgomery County’s military installations have a $2.6 billion impact on the region, are responsible for more than 68,000 jobs and represent 20% of GDP.

2024 Department of the Air Force Information Technology & Cyberpower Conference.

TechMGM

Montgomery is positioning itself to be a hub for tech innovation and has been making strategic investments to attract and support technology-driven companies through initiatives like the Chamber’s TechMGM, a collaboration of local industry, education and government entities working to create partnerships and leverage the city’s unique assets.

Examples of the initiative’s success include Meta’s recent $840 million investment — one of the largest in Montgomery history — for a new data center. And in 2023, Premier Tech unveiled the new headquarters for its systems and automation business group in Montgomery, a $33 million investment.

Montgomery-based Business and Enterprise Systems Product Innovation (BESPIN) is a critical Air Force software factory driving innovation and modernization through rapid, secure and user-centered software solutions for the Department of Defense worldwide. Locally, it strengthens Montgomery’s tech ecosystem, attracting talent, fostering economic growth and collaborating with the Montgomery Chamber’s TechMGM and innovation hubs like MGMWERX.

The city is also investing in fiber optic infrastructure and smart city technologies to meet the high connectivity demands of modern businesses. It hosts tech-focused events like the annual Department of Air Force Information Technology and Cyberpower Conference.

Warehouse / Distribution

Strategically located to quickly access markets across the Southeast, Montgomery County continues to expand its warehouse and distribution sector and plays a vital role supporting supply chains for food service and other industries. UPS, Glovis Alabama, Big Lots Stores, U.S. Foods, the Coca-Cola Bottling Co., W.L. Petrey Wholesale and DG Fresh Distribution AL are among the top employers in the county.

GenPak LLC, an innovator of food service packaging, has been operating out of Montgomery since 1982 and recently celebrated a $22.8 million expansion of its manufacturing facility. The company anticipates 155 new jobs.

Alabama State Government

With more than 10,000 employees, the state government is the second-largest overall employer in Montgomery County and makes significant contributions to the local economy by attracting related businesses and services to the area, and it plays an important role in generating tourism revenue.

The county is also home to the Retirement Systems of Alabama, which consists of the Teachers’ Retirement System, the Employees’ Retirement System, the Judicial Retirement Fund and the Public Education Employees’ Retirement System Board.

Tourism

Montgomery County ranks among the top five most visited counties in the state. The state capital is the #1 international tourist destination in Alabama and recently made the New York Times’ list of 52 Places to Go in 2024.

The highly anticipated Montgomery Whitewater outdoor adventure park opened in 2023 and was named one of Time Magazine’s World’s Greatest Places 2024 and named Project of the Year by Business Alabama magazine. Anchored by a world-class Olympic-standard recirculating whitewater course, one of only three of its kind in the country, the 120-acre center brings whitewater and other outdoor activities to people of all ages and skill levels. The park also features recreational walking trails, dining, craft beer and live entertainment. Future development plans include rock climbing and bouldering areas, zipline and ropes courses, flatwater activities, an on-site hotel and retail spaces.

Montgomery is also home to the state’s second-most popular paid attraction. The Legacy Museum, which opened in 2018 and expanded in 2021, draws an average of 30,000 visitors each month. It is one of three Legacy Sites operated by the Montgomery-based non-profit Equal Justice Initiative along with the National Memorial for Peace and Justice, which also opened in 2018, and the Freedom Monument Sculpture Park, which opened in early 2024.

To accommodate the increasing flow of visitors to the city, two new hotels recently have opened. Spark by Hilton opened in June 2024, and the Trilogy Hotel Montgomery, operated by Marriott, opened in April 2023.

Business Briefs:

NOVEMBER 2024: DC Blox announces it will add a new hyperscale edge node data center site in Montgomery. The facility will initially support 5 MW for an anchor tenant, with the capacity to expand up to 40 MW to accommodate other tenants.

SEPTEMBER 2024: The City of Montgomery starts construction on the Calmar Community Center. The $2.5 million, 5,000-square-foot facility is expected to open in spring 2025.

OCTOBER 2024: HD Hyundai Power Transformers USA receives 2024 Manufacturer of the Year Award from the Business Council of Alabama and the Alabama Technology Network.

JULY 2024: Montgomery-based Sabel Steel Service names Sean Sabel its president and CEO. Sabel is the 6th generation of the Sabel family to run the company. His father, Keith Sabel, was president and CEO for 35 years.

JULY 2024: Montgomery Whitewater, which opened in 2023, is named one of Time Magazine’s World’s Greatest Places 2024. The park offers rafting, kayaking and a variety of outdoor activities for people of all ages and skill levels. It also features recreational walking trails, dining, craft beer and live entertainment experiences.

OCTOBER 2024: Hyundai Mobis breaks ground on a $52 million, 460,000-square-foot facility that will serve the aftermarket parts needs for Hyundai and Kia’s national dealer networks. The expansion is projected to add 27 jobs.

JULY 2024: HD Hyundai Power Transformers USA Inc. announces it will invest more than $14 million to expand its Montgomery facility. The expansion is expected to increase production by 10% and create 50 new jobs.

MAY 2024: Maxwell Air Force Base welcomes MH-139A Grey Wolf helicopters.

MAY 2024: GenPak LLC reopens its Hope Hull manufacturing facility after a $22.8 million expansion. The 400,000-square-foot renovated facility is located in Montgomery Industrial Park.

MAY 2024: Meta, Facebook’s parent company, announces plans for an $840 million, 715,000-square-foot data center in Montgomery. The facility will bring 150 jobs to the city. 

FEBRUARY 2024: Montgomery Regional Airport adds two chargers, a Level 3 aircraft charger located on the field and a Level 2 charger for public EVs. The charging system is designed by Vermont-based Beta Technologies.

AUGUST 2023: Hyundai Motor Manufacturing Alabama announces plans to invest $290 million in its Montgomery assembly plants to add the next-generation Santa Fe SUV to its assembly line.

JULY 2023: Montgomery Whitewater opens. In addition to whitewater activities, the $90 million, 120-acre park includes a restaurant, outdoor bar, walkways, yoga, vendors and live music.

JUNE 2023: Premier Tech opens a new headquarters for its systems and automation business group in Montgomery. The $33 million, 167,000-square-foot facility will be the Canadian company’s new solution hub for its American-based clients.

MARCH 2024: The Montgomery Chamber and its economic development partners receive two grants totaling $2.2 million from the state to support the development of new industrial sites in the county.

FEBRUARY 2023: Hyundai Motor Manufacturing Alabama joins the electric vehicle market, rolling out its first Genesis Electrified GV70, a luxury SUV. It is the first Genesis model assembled outside of South Korea.

This article appears in the January 2025 issue of Business Alabama.

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