Is the Automotive Industry the Next Big Thing for Walker County?
With the mining industry in a state of flux, can Walker County capitalize on a solid automotive foundation?
Words by Terrell Manasco | Images by Ryan McGill
The coal industry has been the lifeblood of Walker County’s economy since before many of us were born. Like a dependable older brother, it has born us on its back through brutal winters and blistering summers, sustaining us through depression and recession, boom and bust, feast and famine.
Today, coal mining is no longer the indestructible giant we once knew. The U.S. Energy Information Administration recently reported that in 2020, U.S. coal production fell to its lowest level since 1965. The Sun-Herald (Biloxi) stated that “employment in Alabama coal fields decreased 43 percent between 1990 and 2014…more than 21,000 coal-related jobs disappeared in 19 counties…”
Despite pervasive doom-and-gloom, there are encouraging signs on the horizon for not only the state of Alabama but also the Yellowhammer State’s northwest corridor, which includes Jasper and surrounding towns. In recent years, automotive giants Mercedes-Benz, Honda, and Hyundai added new plants in Alabama, and five automotive suppliers—Yorozu, Nitto, HTNA, Vistech Manufacturing, and Heiche—now boast facilities in Jasper.
“With those five, you're looking at over 600 jobs created by the automotive sector in Walker County,” says Walker County Developmental Authority Executive Director David Knight. “That’s over $150 million invested. The largest investment was Yorozu at about $115-120 million. Payroll amongst all those is around $20 million a year—that's a heck of an impact on a community our size.”
For decades, the automotive industry was anchored in Detroit, Michigan, and other Rust Belt towns, but in the last two decades a shift has occurred from the “Motor City” to the Southeast.
“Absolutely,” says retired Jasper auto dealer John Crump when asked about the automotive industry’s big swing to the South. “The imports are what has brought it—Toyota, Mazda, Nissan, etc.”
But what precisely has prompted this shift and caused automotive suppliers and manufacturers to invest millions of dollars in this state? What are the factors that give Alabama—and Walker County for that matter—an automotive allure?
Knight believes that major factors include Alabama’s able workforce, labor availability, wage rates, and distribution ability.
“I think the Southeast in general—the labor environment, the right to work, has been really attractive to the automotive sector,” says Knight. “Mercedes is what put Alabama on the map. In my mind, without Mercedes, you probably wouldn't have Honda and some of the others. We’re within 250 miles of 11 different automotive OEMs (original equipment manufacturers). That concentration of OEMs in the region makes it more attractive for suppliers.”
“First and foremost, the state of Alabama is pro-business,” adds Carl Cannon Chevrolet Buick GMC Executive Manager Curt Ballard. “We have the workforce, we have an abundance of sites suited for major manufacturing, we have the state docks in Mobile for shipping, and we are centrally located in the heart of the Southeast’s growing automotive manufacturing industry. Sometimes you just have to get your foot in the door and make a good showing. That’s what the state of Alabama did with Mercedes in Vance.”
In view of these developments, can we be confident that the industry can continue to thrive in the coming years? More optimistically, is Jasper and Walker County poised to become a player in the region’s auto industry?
“Definitely,” says Heiche Commercial Director Alberto Romero. “You see the activity around with Yorozu, Nitto, HTNA, with us...there's a lot of interest. A lot of companies are looking at Jasper and Walker County for the future.”
Maik Staude, Head of Operational Excellence with Heiche’s parent company, KAP Surface Technologies, is also confident. “This (local industry) will definitely grow in the next 3-5 years to the top,” he said. “It will bring a lot of jobs here.”
In addition to its nascent manufacturing prowess, Jasper has always been a car town. With five major new car dealers, an array of pre-owned lots peppering Viking Drive and beyond, tire and body shops, tinting, electronics, lifts, car washes, detail shops, auto parts stores, and much more, Jasper has the automotive infrastructure to build upon.
Ballard says that Walker County’s automotive muscle will be a key component to filling the void left by coal. “It would be hard to overestimate the impact the coal industry has had on Walker County,” he says. “I don’t think any single industry can replace it but automotive has clearly been the largest piece to that puzzle.”
Crump further stated that he believes the local auto industry could take off but is unsure to what extent. “I don't think at the magnitude that the coal miners did because that industry employed so many people,” Crump said. “But, I think it's a good livelihood for us.”
Growth may occur by nontraditional means. With consumers transitioning to electric vehicles, it’s logical to anticipate an increase in demand for EV parts and other accessories. “The new focus is on electric vehicles,” says Shojiro Nakano, President of Yorozu Automotive Alabama. “I can project that any company that makes electric parts will be part of a major industry of electric vehicles that's coming.”
Assuming the optimistic forecasts are correct, could both the automotive and mining sectors co-exist? If so, is it possible for both industries to grow?
Drummond Company, a mining corporation founded in Walker County, continues to cast a strong presence in the area even though coal production is down. Krystal Drummond, who serves as Director of Employee and Community Engagement, Drummond Company, underscores the importance of coal across many industries and is hopeful that Walker County will continue to grow in the coming years.
“The coal industry has been a foundation of Walker County since the 1800s, with generations of families making their livelihoods in and around the mines. Over the years, the volume of coal production in Alabama has been in a state of decline due to the mines reaching the end of their economic lifespan,” says Drummond. “Drummond is not currently mining in Alabama; however, there is still coal produced in the state—some goes to Alabama Power and other industrial customers, some goes to our own ABC Coke Plant in Tarrant, and the rest is mostly exported through the Alabama State Docks in Mobile for the steel industry as metallurgical coal. As always, Drummond Company wants what is best for Walker County. The growth of the automotive industry is a welcome development that will hopefully continue to provide generations of employment and prosperity to the residents of Walker County.”
Knight couldn’t speculate on coal industry growth but says diversification of an industrial base enhances economic stability and resiliency. In other words, Walker County is better if the coal and automotive industries can work in tandem. The automotive industry might be growing as coal reserves in Walker County are declining, but the industry still needs coking coal for parts and other supply chains.
One final resource at Walker County’s disposal that does not need to be overlooked in the final analysis is the luxury of interstate access.
“I -22 is probably the biggest game-changer for Walker County in the 20-plus years that I've been doing this,” Knight says. “It has changed the quality and the quantity of the projects we see. Without I-22, folks like Yorozu would not be able to look at the area because of the difficulty of getting goods to their customers.”
Romero agrees. “I-22 is the connector. It connects us to Atlanta, and it connects the world to Jasper.”
Ballard says interstate accessibility is a must because suppliers need direct access to interstate and rail. “The supply chain is complicated enough without transportation-related issues. Walker County is well-positioned to take advantage of both as we move forward. The future is bright.”
Perhaps Ballard is correct, and the auto industry will usher us into a prosperous new age in Walker County, possibly one to surpass our expectations. Walker Countians are a hardworking, resilient people. We’ve known both prosperity and poverty.
Whichever one lies ahead, we are ready to meet it. 78