Alabama Secretary of Commerce, Governor’s Note Challenges, Opportunities for the State Economy

Alabama is not immune to global economic disruption but is in a strong position to turn challenges into opportunities, according to the state’s commerce secretary.

Secretary Greg Canfield said this week at the Economic Development Association of Alabama’s 2022 summer conference that the economic disruptions that began with the global pandemic now include global inflation, a tight labor market and ongoing supply chain problems.

“Everyone is talking about disruptions again. It seems like we can’t get out of this pattern of talking about disruption,” Canfield said. “Yes, we’re coming out of the pandemic, but now we’re facing things like the highest inflation in 40 years.”

While Alabama is feeling the pressure, so is the rest of the world, Canfield said.

“We’re concerned that this is a different time,” Canfield said.

He referenced the popular Netflix show Stranger Things and its Upside Down world where things seem to be opposites.

“What is usually good news today is not perceived as good news by the Federal Reserve,” Canfield said. “By that I mean the June unemployment reports were great. The June reports on the number of jobs created were great. But the Fed happens to see this through the lens, so maybe that’s not such good news.”

Alabama Secretary of Commerce Canfield highlights challenges and opportunities in the current economic climate in the Alabama NewsCenter on Vimeo.

Economists don’t see the economy responding to high inflation as it should, he said. Sooner or later this could lead to a recession.

Meanwhile, fast-rising inflation is hitting workers with higher prices at the pump and grocery store. This puts pressure on wages and lowers consumer spending.

“We will turn these challenges into opportunities,” Canfield told the state’s business promoters. “Alabama will emerge as a more dynamic economy, but we will need your help.”

During her keynote speech at the conference, Alabama Gov. Kay Ivey vowed “the best is yet to come,” while emphasizing the challenges posed by high inflation. She declared: “Our country is at a critical juncture.”

Canfield and Ivey both noted the $7.7 billion in new investment and more than 10,000 announced jobs related to Alabama’s economic development projects announced last year.