Founded in Birmingham in 1941, Southern Research is a nonprofit scientific research organization that employs more than 250 scientists and professional staff. Over the past 80 years, the organization has helped shape modern cancer treatment practices, including developing seven FDA-approved cancer drugs and testing more than half of the active chemotherapies in the United States. Led by a world-class executive team, Southern Research’s scientists and professional staff comprise one of the nation’s premier nonprofit translational research institutes.
Southern Research has conducted more than $30 million in coronavirus research over the past two years, including collaborating on a COVID-19 vaccine currently in clinical trials, conducting thousands of PCR tests, and refining the underlying chemistry of critical treatments.
Under the banner “Be the Breakthrough,” every member of its community of science plays a critical role in driving breakthroughs that improve our community and help heal the world. The team carries this noble mission with energy and resolve, acting as conduits between science and society.
Southern Research receives funding from multiple public and private sources, attracting “fresh” dollars into the Alabama and Birmingham economies. Funding partners include the National Cancer Institute, National Institutes of Health, the U.S. Department of Defense, the U.S. Department of Energy, NASA, hospitals, major aerospace firms, utility companies, and other private and government organizations.
Southern Research Impact Overview
Through its operations and spending by the institution, its employees, and visitors every year, Southern Research generates and supports:
$221.7 million in economic impact to the state.
1,514 jobs throughout the state.
$6.5 million in state and local government revenue to the state.
More than $1 million in community benefit through donations and volunteer work.
Generating Economic Activity in the State
Direct spending by Southern Research generates economic activity throughout Alabama. In FY22, the direct spending of Southern Research in combination with the indirect and induced impacts of dollars being re-spent throughout the economy generated $221.7 million in overall economic impact ($99.7 million direct impact and $122 million indirect and induced) to the state.
Southern Research generates economic impact when it spends on goods and supplies and when it pays its employees. These employees then generate indirect and induced impacts when they spend their paychecks on goods and services in the local economy such as food, personal goods, and mortgage/ rent. The total impact of all of this spending amounts to the $221.7 million economic impact of Southern Research in Alabama.
Economic Impact in the Region
Southern Research direct spending also generates economic activity throughout the Birmingham region. In FY22, the Southern Research direct spending in combination with the indirect and induced impacts of dollars being re-spent throughout the regional economy generated $167.3 million in overall economic impact to the Birmingham region ($76.2 million direct impact and $91.1 million indirect and induced).
Providing and Supporting Jobs Across the State
In FY22, Southern Research directly employed 405 individuals (full-time or part-time positions). This direct employment generates additional spending throughout the state that in turn supports additional indirect and induced jobs created when Southern Research, its employees, and visitors spend in the region and state. In total, Southern Research supports 1,514 jobs (648 direct and 866 indirect and induced jobs) throughout Alabama.
Employment Impact in the Birmingham Region
In FY22, Southern Research directly employed 236 individuals (full-time or part-time positions) living, and therefore spending dollars, in the Birmingham region. This direct employment generates additional spending throughout the region that in turn supports additional indirect and induced jobs created when Southern Research, its employees, and visitors spend in the region. In total, Southern Research supports 846 jobs throughout the Birmingham region.
Tax Impact for the State
State taxes attributable to Southern Research’s presence totaled nearly $6.5 million ($1.5 million in direct impact and $5 million in indirect and induced impact) in FY22. This income is generated when Southern Research, its employees, and visitors spend on goods in the region (e.g., at restaurants, retail, hotels/motels, etc.).
Tax Impact for the Region
Local taxes attributable to Southern Research’s presence totaled $5.1 million in FY22 for the Birmingham region.
Connecting With the Community
Southern Research is intimately engaged with the community. Southern Research faculty and staff generate more than an estimated $1 million annually in charitable donations and volunteer services every year. These benefits are in addition to the $221.7 million annual economic impact of Southern Research to the state and include the following:
$404,125 donated to local charitable organizations in FY22.
$600,000 in value of volunteer time provided to area communities in FY22.
Construction Impact
Southern Research is investing $108 million to modernize campus and grow biotech. The goal is to build a biotech innovation center to anchor an urban research park. During the construction period, the $108 million undertaking is projected to generate an overall economic impact of $184.7 million, support 1,174 jobs, and produce nearly $4.1 million in state and local tax impact. This new facility will double lab space to study infectious diseases and expand capacity to research chronic diseases.