Strong Economies are Regional Economies: Why Birmingham Must Unite to Thrive  - Birmingham Business Alliance

Economic success is rarely achieved in isolation. Instead, vibrant and sustainable economic prosperity emerges through intentional, collaborative regional efforts. Over the past several decades, regions that have embraced cooperative economic development strategies have consistently outpaced fragmented counterparts. It is clear: strong economies are regional economies, and the Birmingham Region stands to gain significantly by embracing this principle. 

Historically, Birmingham and its surrounding communities have operated within individual silos, each pursuing economic development independently. While this approach has yielded incremental growth, it pales in comparison to regions that strategically unite resources, vision, and talent. 

Consider, for example, the growth trajectory of regions such as Raleigh-Durham, Nashville, and Charlotte over the past 50 years: 

• Raleigh-Durham, NC: Anchored by collaborative regional initiatives like the Research Triangle, Raleigh-Durham has grown dramatically. In 1970, the region’s combined metropolitan population was approximately 663,000. Today, it exceeds 2.1 million, driven largely by intentional, collective regional investments in innovation, infrastructure, education, and workforce development. The GDP for the Research Triangle region reached approximately $158 billion in 2022, reflecting substantial economic growth driven by a unified regional approach. 

• Nashville, TN: Nashville's metropolitan region embraced collaborative economic strategies, resulting in a population increase from around 541,000 in 1970 to over 2 million today. Its GDP has soared to approximately $168 billion as of 2022, reflecting a diverse and dynamic regional economy. A region-wide approach has been instrumental in making Nashville an attractive hub for healthcare, technology, and entertainment. 

• Charlotte, NC: Similarly, Charlotte’s population has soared from about 558,000 in 1970 to approximately 2.7 million today, supported by coordinated regional planning and economic integration. The Charlotte metropolitan area's GDP was about $209 billion in 2022, highlighting the significant benefits of unified regional growth strategies. 

Contrast these examples with the Birmingham region, which, despite considerable assets, has experienced more modest growth. The Birmingham metropolitan area had a population of roughly 740,000 in 1970 and currently hovers around 1.1 million. Its GDP in 2022 was around $71 billion, considerably lower than the comparative regions mentioned. While growth has occurred, it has lagged significantly behind peer regions that prioritize regional cooperation. 

However, fragmentation alone is not the only issue impacting Birmingham’s growth. Several additional factors have held the region back: 

• Workforce Development and Talent Retention: A shortage of skilled workers and difficulty retaining young talent have significantly limited regional economic potential. Aligning education and workforce training programs more closely with industry needs is essential for sustained growth. 

• Infrastructure Investment: Inadequate infrastructure, including transportation systems, public transit, broadband connectivity, and utility infrastructure, can discourage investment and limit economic expansion. 

• Public Policy and Regulatory Environment: Complex and inconsistent regulations across municipalities can hinder businesses' ability to operate efficiently, causing potential investors to seek simpler regulatory environments elsewhere. 

• Regional Image and Branding: Unclear or negative perceptions of the region reduce its attractiveness to external investors, talent relocation, and new industries. 

• Innovation and Entrepreneurship Ecosystem: Limited support for startups and innovation impedes the growth of new enterprises, industries, and economic opportunities. 

Yet, regional collaboration has already shown tangible successes. One notable example is the Good Neighbor Pledge adopted by the Jefferson County Mayors Association, which has fostered cooperative relationships among municipalities and a level of trust. This pledge demonstrates that collaboration can and does deliver meaningful results, paving the way for more cohesive regional strategies. 

The lesson here is clear: Regions that act collectively to pool resources, align strategic priorities, and leverage combined strengths reap substantially greater rewards. Fragmented efforts dilute resources, duplicate investments, and reduce regional competitiveness. Birmingham must leverage a unified regional vision to attract investment, talent, and innovation. 

Collaboration across municipal lines promotes strategic infrastructure development, attracts higher-value businesses, and fosters an ecosystem where small and medium-sized businesses can thrive. It enhances talent attraction and retention, creating vibrant, connected communities where residents choose to stay and invest their futures. 

The Birmingham Region stands at an exciting crossroads, equipped with the potential to pivot from fragmented approaches toward a cohesive, powerful regional strategy. It's time to embrace a shared economic vision, align resources, and harness collective strengths.

This article was written by BBA President & CEO Steve Ammons.