The University of Alabama
The University of Alabama is Tuscaloosa County’s largest employer.
During the 2022-2023 academic year, UA employed 7,472 faculty and staff along with a few thousand student workers, according to a UA economic impact study published in 2024.
The study, conducted by the UA Culverhouse College of Business Center for Business and Economic Research, stated expenditures for that year totaled more than $1.8 billion and comprised university spending of $1.28 billion along with student spending of more than $566 million on off-campus purchases such as housing, food and clothing.
UA set new record high economic and fiscal impacts on the State of Alabama during that academic year, including $3.3 billion in output, 14,505 jobs, and $151.6 million in income and sales taxes, which included $46.1 million in state sales taxes, $47.9 million in state income taxes and $57.6 million in local sales taxes.
The study also reported a visitor impact of $335.6 million that included more than $218 million from athletics and more than $116 million from other visitor spending.
And when it comes to the impact of a degree from UA, the Culverhouse study projected that a UA graduate with a bachelor’s degree would earn, on average, more than $6.7 million in lifetime earnings in current dollars, while graduates with master’s degrees could earn nearly $8.3 million and those with doctoral degrees could earn about $11 million in current dollars before retirement.
“Over their working lives, the UA education will enable the 2022-2023 graduating class to pay $1.647 billion additional Alabama income and sales taxes than they would have otherwise, comprising $1.156 billion in state-only sales and income tax collections and $491.5 million in local sales taxes,” the study stated.
At Shelton State Community College, its report on the economic value of the college found that in fiscal year 2023-2024, Shelton State added $309.7 million in income to the economies in Tuscaloosa and Bibb counties, and that value is close to 2.1% of the region’s total gross regional product.
During that fiscal year, Shelton State’s impact supported 4,944 jobs, and the school and its students supported one out of every 30 jobs in the service area.
The net impact of Shelton State alumni currently employed in the regional workforce amounted to nearly $257 million in added income in FY 2023-24.
At Stillman College, the institution reported an economic impact of $39.5 million for 2023, up from $28 million back in 2014.
The total lifetime earnings of its graduates in 2023 are estimated at around $344.6 million and 420 jobs, according to the 2024 HBCU Economic Report published by the United Negro College Fund.
Mercedes-Benz US International/Automotive Manufacturing
The first cars produced at the Mercedes-Benz U.S. International plant in Vance rolled off the assembly line in 1997, just two years after the factory’s founding.
The carmaker is celebrating its 30th anniversary in the Yellowhammer State. The plant has produced more than 4.5 million vehicles since 1997, including around 260,000 vehicles in 2024 alone.
MBUSI produces the GLE, GLE Coupe, GLS luxury SUV, and Mercedes-Maybach GLS as well as the EQE SUV, EQS SUV, and the Mercedes-Maybach EQS SUV for all global markets.
The Mercedes plant employs more than 6,000 team members and secures an estimated additional 60,000 jobs in the region with suppliers and service providers.
MBUSI has an annual economic impact of more than $1.5 billion, and its total capital investments by 2018 reached more than $7 billion. Mercedes invested $1 billion in Alabama to start the production of electric passenger cars, expand the plant’s logistics activities and build a battery factory.
Earlier this year Mercedes-Benz announced it would localize a core segment vehicle — the GLC SUV — in Vance and that production would begin in 2027.
MBUSI has more than 180 direct suppliers in the United States. The suppliers located in Tuscaloosa County include Michelin/BF Goodrich, which manufactures tires for passenger cars and light trucks. The company employs 1,450 people and is one of the largest employers in the county.
Other drivers of Tuscaloosa County’s economy in the automotive manufacturing sector include SMP Automotive Systems Alabama and Brose Tuscaloosa.
Nonautomotive Manufacturing
Even before MBUSI, Tuscaloosa and West Alabama have had a long and proud history of manufacturing.
“Although no one employer comes close to the size of MBUSI, collectively they rival in size,” says Barkley Garrett, vice president of community and economic development at The Chamber of Commerce of West Alabama.
A few of the larger employers in the manufacturing sector in the city of Tuscaloosa are Nucor Steel Tuscaloosa; Hunt Refining Co., a petroleum refiner; and Phifer Inc., an insect screening manufacturer and producer of indoor and outdoor sun shading and furniture fabrics.
“These and many more manufacturers produce and distribute a variety of products,” says Garrett. “Skilled trade and logistics jobs are a significant driver for our area.”
Health Care
The health care sector accounts for 8.7% of the total jobs in Tuscaloosa County, according to the Tuscaloosa County Economic Development Authority.
A top employer in health care in Tuscaloosa County is the DCH Health System, which employs around 4,000 people in Tuscaloosa County alone, says DCH Health System spokesperson Rick Plummer.
DCH provides health care for patients in West Alabama and serves close to 390,000 people in its total service area that includes both Tuscaloosa and Fayette counties. Its facilities in Tuscaloosa County include the DCH Regional Medical Center and the Northport Medical Center in Northport.
Besides the DCH Health System, Tuscaloosa County is home to the University Medical Center, Tuscaloosa Veterans Affairs Medical Center and three facilities run by the Alabama Department of Mental Health that provide inpatient, psychiatric services for adults: Bryce Hospital, Mary Starke Harper Geriatric Psychiatry Center and Taylor Hardin Secure Medical Facility.
Transportation and Logistics
Due to the substantial number of manufacturers in Tuscaloosa County, the region requires a robust transportation and logistics industry, Garrett says.
“We have numerous firms focused on trucking, warehousing and supply chain logistics. However, we’re somewhat unique because of our inland port on the Black Warrior River,” he says.
Raw materials imported and exported from the area make Tuscaloosa County one of the largest users of the Port of Mobile, he says.
The logistics companies in Tuscaloosa County include Ard Logistics in Vance, which employs more than 700 workers. Ard is a third-party logistics (3PL) company that, besides logistics, also provides assembly and freight services.
Other transport and logistics companies in Tuscaloosa County include Southeast Logistics, WTI Transport and BLG Logistics Inc.
BLG Logistics, is a U.S. subsidiary of BLG Logistics Group that provides services such as warehousing solutions, distribution, packaging and manufacturing logistics to the automotive, industrial manufacturing and the consumer goods and retail industries.
Business Briefs:
JULY 2025: Marriott Hotels announces plans to build a 144-room luxury hotel from its Autograph Collection at the planned University Beach Lagoon Resort development in Northport.
JUNE 2025: The Chamber of Commerce of West Alabama wins the Association of Chamber of Commerce Executives’ Award for Communications Excellence for its “Back to The Chamber” video.
JUNE 2025: The Chamber of Commerce of West Alabama celebrates its 125th anniversary, commemorating the milestone year with a special promotion in June for new members.
JUNE 2025: The Tuscaloosa City Council approves plans for the construction of a $150 million Sports Illustrated resort that will feature condominiums, timeshare units and retail space.
MAY 2025: Mercedes-Benz announces plans to produce a new “core segment vehicle” at its plant in Vance. Production on the new model will begin in 2027.
FEBRUARY 2025: Warrior Met Coal Inc., in Brookwood, announces that its Blue Creek project could produce 6 million short tons per year and generate approximately $1.3 billion in incremental revenues.
MARCH 2025: The city of Northport announces Aug. 16 as the opening day for the new $27 million, 36-acre River Run Park, with amenities that include nine softball and baseball fields.
FEBRUARY 2025: The State Industrial Development Authority approves $23.5 million in grants under the Site Evaluation and Economic Development Strategy program to accelerate industrial development in Tuscaloosa and other cities.
FEBRUARY 2025: FirstBank announces plans to expand into Tuscaloosa, naming Chuck Bracknell market president and SVP to build the area team.
AUGUST 2024: Ambulatory surgical center SurgNet Health Partners of Nashville acquires Tuscaloosa Endoscopy Center. Tuscaloosa Endoscopy has been a staple in West Alabama for more than four decades.
JANUARY 2024: The Tuscaloosa County Economic Development Authority and The University of Alabama announce plans to partner with pre-seed investor Techstars to bring hydrologic innovation-focused accelerator and pre-accelerator programs to Tuscaloosa to create pathways for founders to build water technology companies.
NOVEMBER 2023: Nucor Steel Tuscaloosa announces plans to invest $280 million toward its operations at its Tuscaloosa County rolling mill. The project will be operational by the summer of 2027.
This article appears in the September 2025 issue of Business Alabama.
