News from Boyette Strategic Advisors

White-collar jobs bypass Birmingham

BIRMINGHAM, AL – 09/02/2007

DAWN KENT
News staff writer

Birmingham is at a disadvantage when it comes to competing for jobs in the financial services sector, thanks in part to established state incentives that favor manufacturing projects, according to a new study provided to The News.

When stacked up against Atlanta, Charlotte, Nashville and Jacksonville, Fla., the Magic City fares poorly in a look at state and local incentives, as well as tax costs, that would be associated with a hypothetical financial services prospect.

The conclusion: An effort to lure white-collar jobs to Birmingham is being hampered by the same rules governing tax breaks and other benefits that have allowed the state to land manufacturers such as Mercedes-Benz and ThyssenKrupp.

The study, done by Atlanta consulting firm Boyette Levy and funded in part by Birmingham’s Metropolitan Development Board, is seen by local economic developers as a jumping-off point in an effort to change Alabama’s statutory incentives, or those perks allowed by law for new or expanding businesses.

“We want to make sure Birmingham is not at a competitive disadvantage,” said MDB President Ted vonCannon. “We ultimately would like to go to legislators and get incentive packages on a level playing field.”

The study, which has been under wraps since work began on it last fall, focuses on the financial services industry, including banks, savings and loan associations, investment services, credit card companies, insurance firms, stock brokerages and other similar service entities.

In addition, corporate headquarters and research and development companies, two primary targets of Birmingham business recruiters, also face limitations in incentives available by law, vonCannon said.

Complicating the issue is the fact that many companies searching for a new location do not contact local authorities in their initial look. They simply research the taxes and incentives already on the books, without giving MDB an opportunity to put anything together.

“We don’t get to the bat,” vonCannon said. “We get dismissed out of hand.”

And it’s not just a Birmingham issue.