Fostering Business

UAB is an economic engine, directly or indirectly* affecting nearly every resident of the state of Alabama. Statewide expenditures by the university totaled $2 billion in FY 2008-09 and generated $4.6 billion annually in overall economic impact. Here, $1 in every $36 in the state of Alabama economy is supported by UAB.

Using the assumptions of the mid-range scenario, it is projected that by FY20 the business volume impact of UAB will increase to $6.6 million ($2.9 billion direct impact and $3.7 billion indirect). 


Current and Projected Business Volume Impact of UAB (in billions)
Fostering Business Bar Graph-Current and Projected Business Volume Impact of UAB
  Direct Business Volume Impact Indirect Business Volume Impact Total Business Volume Impact (Direct + Indirect)
UAB Current (FY 09) $2.0 billion $2.6 billion $4.6 billion
UAB Projected (FY 20)
Conservative Scenario
$2.6 billion $3.4 billion $6.0 billion
UAB Projected (FY 20)
Mid-Range Scenario
$2.9 billion $3.7 billion $6.6 billion
UAB Projected (FY 20)
Aggressive Scenario
$3.1 billion $4.0 billion $7.1 billion


* UAB affects business volume in the state of Alabama and the local region in two ways:
  • Direct expenditures for goods and services by the university, its employees, students and visitors.  This spending supports local businesses, which in turn employ local individuals to sell the goods and provide the services that university constituencies need.
  • Induced or indirect spending within state of Alabama. The businesses and individuals that receive direct expenditures re-spend this money within the state, thus creating the need for even more jobs.