Courtesy of UAB
UAB
University of Alabama at Birmingham campus.
The results of a new economic impact study released today show UAB has outstripped the growth goals it projected during its last study in 2010.
The new study, which UAB President Ray Watts announced at his State of the University address on Wednesday, Oct. 11, showed the UAB academic, research and healthcare system had a $7.15 billion total economic impact on Alabama in the 2016 fiscal year. UAB's previous economic study, released in 2010, showed a $4.6 billion statewide impact during the 2009 fiscal year.
The firm Tripp Umbach performed both economic impact studies. At the time the 2010 study was released, it predicted a "mid-range" growth path for the university to reach a $6.6 billion impact by 2020. Instead, UAB reached that goal three years early.
Watts said in an Oct. 10 interview that this aggressive growth was the result of a strategic plan being implemented to draw more students, more research opportunities and innovation.
"This past year, we had the best year we’ve ever had in every part of our mission,” Watts said. “It’s an exciting time in Birmingham, so I’m not surprised about the economic impact.”
UAB enrolled its largest student body yet — 21,000 students — this fall, he said, and served more than 1.7 million patient visits. Watts also pointed to growth in areas like the Innovation Depot, iLab and new majors like digital forensics and genetics and genomics as programs that have put UAB on the map.
The impact study's $7.15 billion figure includes both direct and indirect influences on the state. Direct impact includes the university's spending such as employment and tax revenue, as well as the money that faculty, students, patients and visitors spend at businesses in Alabama while at UAB. Indirect or induced impact is the result of the direct impact, such as new jobs being created at local businesses or dollars spent by UAB visitors being re-invested or spent again.
The study by Tripp Umbach reported UAB's direct impact at $3.6 billion and its indirect impact at $3.5 billion. For every $1 invested in UAB by the state, the report stated, Alabama receives a total impact of $25. This is an increase from a $16.23 return for every dollar in the 2010 study.
UAB supports 64,000 jobs statewide, 23,000 of them through direct hiring, which Tripp Umbach reported is one out of every 31 jobs in the state. The university also brings in about $268.6 million in tax revenue for Alabama, most of which comes from the UAB Health System. The health system is also responsible for the largest share of UAB's economic impact at $4.3 billion, which is nearly the university's total economic impact in 2010.
The impact study also measured charitable impacts from the university. In 2016, UAB faculty and students gave about $24.6 million in donations and volunteered their time, which Tripp Umbach valued at about $55.9 million. The university also gave about $144 million in charitable healthcare.
For the undergraduate class of 2016, the study estimated that 65 percent of alumni stay in the state, and the additional earning power from achieving a degree would total an extra $31.5 million in their first year of employment.
Watts said retaining and attracting alumni back to Alabama is a major goal for UAB, along with attracting research, entrepreneurs and grant dollars. He noted the Innovation Depot's recent Department of Labor grant for an IT bootcamp-style job training program as just one of the many grants received at UAB this year.
“Our teams that we develop around areas of importance are overachieving. They’re winning more grants, winning more support,” Watts said.
To keep building on UAB's growing economic impact and student body, Watts said the key will be focusing on entrepreneurs and innovation. In addition to Innovation Depot, UAB also works with the Velocity Accelerator to give startups training and capital, and Venture for America fellows are coming to Birmingham in increasing numbers to work with startups. Watts said there were 18 fellows last year.
UAB wants to work with the Birmingham Business Alliance and other groups to build a downtown innovation district to draw young professionals and young businesses, especially after they leave the incubator environment of Innovation Depot. Watts said he would like to see currently unused buildings restored and turned into office spaces ideal for startups and technology-focused businesses.
“We want Birmingham to be known as a place for your tech-oriented, knowledge-based company to grow and thrive," Watts said. “We now have an innovation ecosystem that’s bubbling with energy.”
In looking at the total economic impact of UAB and its growth since 2010, Watts said he wants to keep up the pace.
“We’ve been fortunate to be well-organized and well executed. Our people are driving our mission. And we’re not going to slow down,” Watts said.
