1. Evans Head, Student, Samford University (Accounting & Management)
Economic Overview
Evans Head, Student, Samford University (Accounting & Management)

2. Discussion Points
National Economy
Birmingham Economy (Metro Area)

3. “Economy”
the wealth and resources of a country or region, especially in terms of the production and consumption of goods and services.

4. How do we measure the economy?
*Access to credit*
Ray Dalio, How the Economic Machine Works

5. Cycles

6. “Where are we in the cycle?”
Ray Dalio, How the Economic Machine Works

7. 5 Economic Relationships
1. As price goes up, demand goes down.
2. As price goes up, supply goes up.
3. As interest rates go up, investment goes up.
4. As the supply of money goes up, interest rates go down.
5. As economic growth goes up, unemployment goes down.
Money Supply > Interest Rates > Investment > Productivity > Employment

8. Economic Performance Indicators
Projections
National Economy

9. Economic Performance Indicators
Real GDP:

10. Economic Performance Indicators
Consumer Price Index (CPI)

11. Economic Performance Indicators
CPI - all items & CPI - Housing

12. Economic Performance Indicators
CPI - all items & CPI - Housing

13. Economic Performance Indicators
Current Employment Statistics: Unemployment

14. Economic Performance Indicators
Consumer Confidence:

15. Economic Performance Indicators
Current Employment Statistics: Wages

16. So, why is this happening?
Federal Funds Rate

17. Housing units started & Federal Funds Rate

18. 10-Yr Treasury Rate minus 2-Yr Treasury Rate
What else is going on?
10-Yr Treasury Rate minus 2-Yr Treasury Rate

19. Ownership vs “Rentership”
Housing:
Ownership vs “Rentership”
Pew Research Center

20. Share of households who choose to rent
Housing:
Share of households who choose to rent
Pew Research Center

21. Future Projections Federal Funds Rate increases Inflation increase
Geopolitical tensions
Increase in housing rental as consumer taste changes

22. Birmingham Economy

23. Defining the “Birmingham Metro Area”
Seven Counties:
Jefferson
Shelby
Chilton
Blount
St. Clair
Walker
Bibb

24. METRO MONITOR

25. Metro Monitor 2018, Brookings Institute
Growth
Prosperity

26. Percent Change in Employment Rate (2011-16)

27. BMA Population since 1993

28. Local Industries Healthcare Banking Manufacturing
Companies based in Birmingham: (largest employers in the state, large market-cap companies):
Manufacturing: ACIPCO McWane, Inc. Vulcan Materials Company Drummund Co, Inc. O’Neal Industries
Healthcare:
UAB - The largest employer in the state (23,000) Encompass Health (formerly Healthsouth)
Banking:
Regions Bank - 8th largest US bank by assets BBVA Compass A dozen other banks
Insurance:
BCBS of Alabama Protective Life Insurance
Other:
Brasfield & Gorrie (construction) Buffalo Rock Company - Founded in 1901; producer for Pepsi Coca-Cola Bottling Company United - Founded in 1902; 3rd largest bottler of Coke products in the US. EBSCO

29. Future Projections Manufacturing tightening from trade tensions
Birmingham should follow national swings

30. Evans Head, Samford University
Thank you
Evans Head, Samford University

31. Questions?