Fostering Business

UAB BUSINESS VOLUME IMPACT
UAB is an economic engine, directly or indirectly affecting nearly every resident of the state of Alabama.  It generates $4.6 billion annually in overall economic impact. Statewide expenditures by the University totaled $2 billion in FY 08-09. UAB affects business volume in the state of Alabama and the local region in two ways:

1. 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.
2. 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.

As a result of expenditures on goods and services by the University, the overall economic impact of all of UAB’s operations on the state of Alabama in FY09 was $4.6 billion ($2.0 billion direct impact and $2.6 billion indirect).  Therefore, $1 in every $36 in the state of Alabama economy is supported by UAB.
 
Utilizing the assumptions of the mid-range scenario, it is projected that by FY20 the business volume impact of UAB will increase to $6.6 billion ($2.9 billion direct impact and $3.7 billion indirect). 

Current and Projected Business Volume Impact of UAB (in billions)
	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

In FY 08-09, UAB received $284.9 million in appropriations from the state of Alabama.  For every $1 invested by the state in UAB, $16.23 is generated in the state’s economy.