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Carvana plans to open Alabama distribution hub, creating more than 450 jobs

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Governor Kay Ivey announced today that Carvana, a leading e-commerce platform for buying and selling used cars, plans to invest more than $40 million to construct an Alabama distribution and fulfillment center, creating more than 450 jobs in Bessemer.

Carvana, the fastest-growing auto retailer in the U.S., plans to open the Jefferson County facility to strengthen its logistics network in the Southeast, which is integral to addressing the nationwide demand the online auto retailer is seeing for The New Way to Buy a Car™.

“We have been working hard to position Alabama as a prime destination for fast-growing growing e-commerce companies needing a first-class infrastructure network for their distribution operations,” Governor Ivey said. “We are thrilled that Carvana has selected Bessemer for its newest state-of-the-art distribution hub and look forward to building a partnership with this innovative company.”

Carvana’s planned Bessemer hub will handle fulfillment activities for Alabama and surrounding states, and it will coordinate with similar facilities as the company moves inventory across the nation. The center will also house inspection, maintenance and photography functions critical to delivering the exceptional customer experience Carvana has become known for.

The planned Carvana facility is slated to be constructed on a privately owned site in Bessemer, a former industrial center about 18 miles southwest of Birmingham. Carvana plans to invest more than $40 million to build and equip the new facility.

The project should create more than 450 jobs with an average annual salary exceeding $35,000.

“Though Carvana is relatively young, its technology-focused model has powered rapid growth and made the company a growing force in the auto retailing industry,” said Greg Canfield, Secretary of the Alabama Department of Commerce. “I know that Carvana’s new, state-of-the-art facility in Bessemer will help the company continue to grow and sustain its rapid momentum.”

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In as little as five minutes, customers can shop more than 15,000 vehicles on Carvana.com, finance, purchase, then select as-soon-as-next-day delivery or Car Vending Machine pickup. Customers shop from the comfort of home or on the go via their mobile device, saving valuable time and money by skipping the dealership.

Carvana vehicles are inspected, reconditioned and photographed in 360-degrees at its inspection centers, like the one planned in Bessemer, so customers get a detailed, high-definition virtual tour of every vehicle. Additionally, every vehicle comes with a seven-day return policy, so the customer can live with their vehicle for a week and ensure it fits their life.

Officials in Jefferson County welcomed Carvana’s decision to locate one of its newest distribution centers in Bessemer.

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“We’ve enjoyed tremendous success in Bessemer when it comes to recruiting companies to our city, whether it be Dollar General in 2011 or most recently Amazon,” Mayor Kenneth Gulley said. “We’re tremendously excited about Carvana joining this growing list of companies, especially because Carvana will be creating jobs that will offer great wages and benefits that will afford residents of Bessemer an opportunity to work hard and provide a great life for their families.”

Jefferson County Commission President Jimmie Stephens said the Carvana project represents a milestone in the county’s economic development efforts.

“Adding 400 jobs in the Bessemer area in addition to Amazon is really changing the business landscape not just for Jefferson County but for the entire region,” Stephens said. “Carvana is a forward-looking company that is looking at the business of selling cars in a different way.”

Jeff Traywick, vice president of economic development for the Birmingham Business Alliance, said the metro area’s western region continues to see increased attention from companies in the e-commerce and logistics sectors.

“This project is further evidence that the area’s strong infrastructure, central location in the southeastern United States and our quality workforce makes our region an excellent choice for companies looking to grow in the South,” Traywick said. “We are excited about Carvana’s selection of Bessemer for this new facility and look forward to their continued success.”

The Alabama Political Reporter is a daily political news site devoted to Alabama politics. We provide accurate, reliable coverage of policy, elections and government.

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Economy

Alabama unemployment rate drops more than 2 points to 5.6 percent

Micah Danney

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(STOCK PHOTO)

The state’s seasonally adjusted unemployment rate decreased to 5.6 percent in August, down from 7.9 percent in July, according to the Alabama Department of Labor. 

The figure represents 127,186 unemployed people, compared to 176,556 in July. It compares to an August 2019 rate of 2.8 percent, or 62,149 unemployed people.

“August showed a larger drop in the unemployment rate than we’ve seen for a few months,” said Alabama Labor Secretary Fitzgerald Washington. “We are continuing to see our initial claims drop, staying under 10,000 for the past several weeks. We regained another 22,200 jobs this month but are still down more than 86,000 from this time last year.”

Washington said that the number of people who are working or actively looking for work is at its highest level ever, which he described as a sign that people are confident that there are jobs to be found. 

Gov. Kay Ivey said the numbers are good news for Alabama. 

“We have worked extremely hard to open Alabama’s businesses safely, and to put our hard-working families back to work,” Ivey said in a statement. “We know that challenges remain, and we will endeavor to meet them so that we can get back to our previous, pre-pandemic record-setting employment numbers.”

All the state’s counties and metro areas experienced a decrease in unemployment rates from July to August. The most gains were seen in the government sector, the professional and business services sector and the trade, transportation and utilities sector.

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Counties with the lowest unemployment rates were:

  • Clay County – 3.4 percent
  • Randolph, Franklin, Marshall, Cullman, Cleburne and Cherokee Counties – 3.6 percent
  • Blount County – 3.7 percent

Counties with the highest unemployment rates were:

  • Wilcox County – 14.8 percent
  • Lowndes County – 13.8 percent
  • Greene County – 10.9 percent

Major cities with the lowest unemployment rates are:

  • Vestavia Hills – 3 percent
  • Homewood  – 3.2 percent
  • Madison – 3.3 percent

Major cities with the highest unemployment rates are:

  • Prichard – 15.4 percent
  • Selma – 12.9 percent
  • Bessemer – 10.7 percent

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Economy

New unemployment claims drop slightly

Micah Danney

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There were 8,848 new unemployment claims filed in Alabama last week, slightly fewer than the 8,902 filed the previous week, according to the Alabama Department of Labor.

Of the claims filed between Sept. 6 and Sept. 12, 4,485, or 51 percent, were related to COVID-19. That’s the same percentage as the previous week.

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Economy

Inaugural Alabama Works innovator awards presented

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The inaugural AlabamaWorks! Innovator Awards were presented by Gov. Kay Ivey and Deputy Director of Commerce and AIDT Director Ed Castile Thursday during the AlabamaWorks! Virtual Conference.

The awards were developed to highlight people and programs across the state that take an innovative approach to solving workforce challenges and help advance Ivey’s Success Plus attainment goal of adding 500,000 highly skilled workers by 2025.

At the time of the inception of the awards, Alabama was unaware of the impact COVID-19 would have on the workforce and although the attainment goal has not changed, our economic and workforce recovery post-COVID-19 will hinge on innovators like those recognized.

“The workforce challenges that we face today are not the same ones that we faced six months ago due to the COVID-19 pandemic that has completely reshaped the workforce landscape,” said Gov. Kay Ivey. “The State of Alabama is relying on those who are leading the charge by implementing innovative solutions in their cities, counties and regions to further economic and workforce development.”

The recipients are visionaries, outside-of-the-box thinkers and problem solvers. The programs test boundaries, explore new opportunities and reach deeper to bring about change. “It is important to recognize these leaders of innovation and to thank them for their hard work and dedication to the citizens, communities and industries of Alabama,” said Ed Castile, deputy director of commerce and AIDT director. “Their innovative approach to workforce development will be key to opening doors, breaking barriers and propelling Alabamians forward.”

The recipients of the first-ever AlabamaWorks Innovator Awards are as follows:

Region 1 – North AlabamaWorks – Beth Brumley, Colbert County Schools

Beth Brumley built the Health Science Program for Colbert County Schools from the ground up by using her experience in the healthcare field to provide critical, real-world skills to her students. She developed key relationships within the healthcare community to provide her students enhanced learning opportunities and exposure, which resulted in increased demand for program graduates. Beth was also named the 2020 National New Teacher of the Year through the Association for Career and Technical Education. By bridging the gap between education and employer, Beth has created a formula for success that positively impacts the workforce.

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Region 2 – East AlabamaWorks – The Sylacauga Alliance for Family Enhancement (SAFE)

SAFE has been a model for supportive services to empower individuals and families while fostering positive and healthy development of the community for nearly 25 years. In their program, SAFE combines occupational and employability skills to help job seekers be ready to enter the workforce regardless of barriers they may have faced in the past. Their dedication to providing practical solutions to modern problems is a testament to their heart for service and passion for helping their community and region.

Region 3 – West AlabamaWorks – Dr. Mike Daria, Superintendent Tuscaloosa City Schools

Dr. Daria has played a crucial role in the success of West Alabama’s workforce development by fostering important relationships between industry and education. His leadership has focused on increased Career Technical Education (CTE) enrollment, supporting local Worlds of Work events and the Educator Workforce Academy. Dr. Daria’s emphasis on the importance of identifying career pathways for the students in his district and then providing viable opportunities for students to take those paths, make him invaluable to West Alabama.

Region 4 – Central Six AlabamaWorks – Ed Farm

Ed Farm is the signature program of TechAlabama that focuses on encouraging children and adults to discover and pursue STEM careers. Ed Farm has a vision for a world full of invention, led by citizens who have been equipped with the necessary tools to fill or create the careers of the future. Through equipping educators and communities with innovative tools, strategies and programs they are able to support active learning for all students. With three signature tracks, Ed Farm is poised to help increase educational equity and improve learning outcomes through technology all while preparing the future tech workforce.

Region 5 – Central AlabamaWorks – Tiger Mochas, Auburn City Schools

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Tiger Mochas is a collaborative effort between special education students, FCCLA (Family, Career, and Community Leaders of America) members and peer volunteers at Auburn High School. This student-led organization is serving up a lot more than hot cups of coffee to their peers because through their work, students are provided meaningful, hands-on work experience that teaches important functional, social and daily living skills. Graduates of the program leave with not only work and employability skills, but in-demand soft skills that will help them succeed in life and work.

Region 6 – Southeast AlabamaWorks – WeeCat Industries

WeeCat Industries uses a simulated workplace model to meet the growing demand for a skilled workforce. WeeCat saw an opportunity to begin teaching work ethics and employability skills as early as preschool, and rose to the challenge. Their students clock into work, run an assembly line, fill orders, check invoices, meet production quota, interview for new positions and implement quality control all while earning a “paycheck” to be spent at the WeeCat Store before they can even spell the word “school”. WeeCat Industries places invaluable skills at a crucial age in development which will shape the future of the workforce.

Region 7 – SAWDC AlabamaWorks – Ed Bushaw

Ed Bushaw with the South Baldwin Chamber of Commerce researched and developed initiatives to address the region’s workforce supply to meet the needs of the growing hospitality and tourism industry in his region. His collaborative efforts with business and industry officials resulted in the development of the first Hospitality and Tourism registered apprenticeship program in Alabama. Apprentices receive classroom instruction as well as valuable real-world experience within the hospitality and tourism industry and finish the program with a credential that can be used to advance their career. Ed’s ability to adapt to the needs of industry and implement programs that address those needs are vital to the continued success of southwest Alabama.

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Economy

Report: Transitioning to electric vehicles could save Alabama millions in health costs

Alabama would experience approximately 500 less asthma attacks per year, about 38 fewer premature deaths and prevent more than 2,200 lost workdays annually.

Micah Danney

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Alabama could save $431 million in public health costs per year by 2050, if the state shifted to an electric transportation sector between now and then, according to a new study by the American Lung Association.

Such a transition would reduce other health-related issues, said the organization, which used data on pollution from vehicles and from oil refineries to calculate its findings.

Alabama would experience approximately 500 less asthma attacks per year, about 38 fewer premature deaths and prevent more than 2,200 lost workdays annually.

The transportation sector is one of the main contributors to air pollution and climate change, said William Barrett, the association’s director of advocacy for clean air and the study’s author.

“We have the technology to transition to cleaner cars, trucks and buses, and by taking that step we can prepare Alabama for the future while also seeing the health and economic benefits forecasted in ‘The Road to Clean Air,’” Barrett said. “Especially as our state faces the impacts of climate change, such as extreme storms, this is a powerful and practical opportunity to take action to improve our economy, our health and our future.”

Trading combustion-powered vehicles for electric ones could result in $11.3 billion in avoided health costs across southern states by mid-century, the report estimated, and prevent roughly 1,000 premature deaths.

Nationally, Americans stand to save $72 billion in health costs and $113 billion in avoided climate change impacts, the ALA said.

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The path to that future depends on leaders factoring public health effects into decisions about transportation, Barrett said.

That involves steps like pursuing electric vehicle fleets when purchasing decisions are being made and supporting the creation of enough charging stations along highways, roads and at truck stops.

Investing in that infrastructure can drive wider economic benefits, Barrett said. He cited California’s increased manufacturing of electric vehicles.

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Tesla is the most well-known producer that has located there, but Barrett said that makers of trucks and buses have also chosen to locate their facilities in the state.

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