A Limestone County Career Technical Center student welds a piece of metal in this undated file photo.

Up to 25,000 jobs could be created in the North Alabama area over the next two to three years, and local leaders believe it will take a substantial cooperative effort to fill them all.

In an effort to throw their arms around the issue, Deloitte performed a labor study using data obtained from interviews with hiring officials at 94 companies. The interviews were meant to assess a number of factors, including the Huntsville area’s ability to attract and retain talent, strategies for attracting employees and where they will come from.

The study was commissioned by Launch 2035, a collective made up of economic development leaders and elected officials from Madison, Limestone and Morgan counties. There’s much work ahead, but officials say because the growth was anticipated, the region is in a good position moving forward.

What the study says

The study found 14,000 direct jobs would be created over the next few years, which would lead to the creation of 11,000 indirect jobs. Those numbers include the future Mazda Toyota Manufacturing U.S.A. plant, which plans to hire 4,000 people. Thousands more would be hired to work for the plant’s suppliers.

Though the prospect of those jobs is a positive for the area, North Alabama is also enjoying record low unemployment.

Chip Cherry, president and chief executive officer of the Huntsville/Madison County Chamber of Commerce, said the interviews with hiring officials provided “unparalleled insight” into the regional market so employment gaps could be found. He explained there are three levels of employment — entry level, semi-skilled and management or executive. It’s the semi-skilled, or middle level, where employment challenges lay.

“We have a significant number of people who are going to be on the advanced manufacturing side and the professional side,” Cherry said. “We have people on government contracts, and that requires people have a certain level of experience. A number of those jobs have to be recruited.”

Strategies

Recruitment is a large piece of the puzzle, but there are many other pieces. Officials say some of the jobs could be filled by local talent, but most would be filled by workers within a 50-mile radius or more.

Cherry and Claire Aiello, vice president of marketing and communications for the Huntsville/Madison County Chamber of Commerce, said Huntsville recruiters should learn from a city like Austin, Texas, which brings in 135 to 140 new residents per day. The Huntsville region brings in 20 to 25 new residents each day. Deloitte’s study found the North Alabama region would need 50,000 new people over the next three years to fill the future job demand.

Cherry believes one of the biggest sources of local labor may come from the high schools and junior colleges. He pointed out programs like the Federation for Advanced Manufacturing Education (FAME) program and ongoing efforts by regional vocational schools are allowing high school students to learn valuable manufacturing skills before earning their high school diplomas.

The FAME program provides two-year associate’s degrees to junior college-level students. It also allows students to earn money while learning advanced manufacturing skills.

Pros and cons

Aiello acknowledged Alabama may lose out on some top-tier talent from other parts of the country because “people do have misconceptions about Alabama.”

Deloitte’s report found “recent socio-political news events in Alabama have affected companies’ ability to attract talent nationally.”

“The more we can share our story, the more we can tell people it’s not like the Alabama of the 1960s,” Aiello said.

Interviews with hiring managers also raised concerns about infrastructure, the availability of affordable housing and commute times, which could impact Huntsville’s quality of life rankings.

However, a story from U.S. News and World Report ranked Huntsville No. 11 on a poll of Best Places to Live and No. 1 for Most Affordable Places to Live. Deloitte’s report found the region offers lower commute times than most cities (23.7 minutes versus the national average of 26.4 minutes).

The study noted a few other bright spots. In addition to the anticipated job creation, the Huntsville area has a high concentration of research and development capabilities. It also mentions the future Alabama School of Cyber Technology and Engineering, the first cyber school in the country that will be home to students from across the U.S.

And because of the region’s large federal presence and ecosystem of federal contractors, the report found Huntsville could weather economic recessions much better than other communities.

Employee retention

With the prospect of 25,000 jobs coming, it’s reasonable to think employees at existing companies might consider taking a job with a new company, like MTM or a supplier. Bethany Shockney, president of the Limestone County Economic Development Association, isn’t too concerned about a large exodus from existing Limestone companies, though some company officials are reexamining work environments and employee benefits.

“It allows companies to pause a minute and make sure they have employee satisfaction,” she said. “I think overall working conditions will improve collectively because everybody needs to protect their own workforce.”

In terms of job readiness, the LCEDA and Greater Limestone County Chamber of Commerce have been using at least two annual events to engage students. Those include the Endless Opportunities program for eighth-graders and a career expo, held each year at Calhoun Community College, for juniors and seniors.

Shockney said students also have the ability to participate in apprenticeship programs and job shadowing.

Cherry said providing early training is important as Baby Boomers born in the 1950s retire. He added all the partners in Launch 2035 would continue to work on recruitment efforts, and said Deloitte’s report would serve as a roadmap moving forward.