Economy

Until the early 20th century, the economy of Alabama was dependent almost entirely on agriculture. In the first decades of the 1900's, the development of the iron and steel industry in Birmingham helped lead the state into the industrial age. Today, the largest portion of the workforce is employed in service industries. Manufacturing, mining, and farms are also important.

Alabama's main manufactured goods are transportation equipment, paper products, food products, and chemicals. Metal products, textiles, and lumber and other wood products are also among the state's chief products. Birmingham, Huntsville, Mobile, and Tuscaloosa are the largest manufacturing centers. The iron and steel industry centers in and around Birmingham. Huntsville, home of the George C. Marshall Space Flight Center, is especially noted for aerospace and electronics industries. Ship-building and ship repairing are important in Mobile.

Farming in Alabama has undergone great change since the 1940's. The number of farms has decreased greatly while the average farm size has doubled. Farms in Alabama, however, are still relatively small, averaging about 194 acres (78.5 hectares)—less than half the national average. The use of modern equipment and methods has brought a substantial increase in the quantity and variety of farm products.

Farms occupy about 25 per cent of the state's land area. In general, livestock and livestock products account for nearly 80 per cent of farm income. Alabama's most profitable livestock products are broiler chickens, cattle, and eggs. Alabama is a leading national producer of broilers. The main farm crops are cotton, soybeans, corn, peanuts, and wheat.

The majority of the state's cotton is grown in the Tennessee Valley in northern Alabama. The wiregrass region, a 10-county area in the southeast part of the state, produces most of the state's peanuts, and a great amount of cotton, corn, and soybeans. A variety of fruits and vegetables, including potatoes, sweet potatoes, blueberries, watermelons, and tomatoes, are also grown.

Alabama's most valuable mineral resources are fuels, especially coal, which is mined in the northern half of the state. Petroleum and natural gas are produced in the southwestern part of the state. Methane, extracted from coalbeds, is also important.

Alabama is a leader among states in producing portland cement. Other nonfuel minerals produced include common clays and construction sand and gravel. Decorative marble, quarried near Sylacauga, is used nationwide.

Forestry and Fishing. Forests of commercial quality, including stands of timber on farms, occupy about two-thirds of the state's land area. Alabama is one of the South's leading producers of saw timber. Pine is the chief commercial variety, but oak and a number of other hardwoods are also harvested.

Fishing is an important activity along the Gulf of Mexico coastline; shrimp dominate the catch, but other important fish include mackerel, blue crabs, mullet, red snapper, and oysters. Catfish farming is a major industry in west central Alabama.

Roads and highways cover the state. Birmingham, Montgomery, and Mobile are the main railway centers. Most large cities have airports.

A large amount of traffic is carried on Alabama's navigable waterways. One of the busiest routes is the Black Warrior Tombigbee Waterway. The Tennessee-Tombigbee Waterway, opened in 1985, is a canal connecting the Tennessee and Tombigbee Rivers. Mobile, located in the center of the Gulf Coast, is one of the largest ports in the United States.