(Year in review: No. 3) Local economy weathers pandemic

Published 5:15 am Wednesday, December 30, 2020

Editor’s note: The Times is counting down 2020’s most noteworthy stories as determined by The Times editorial staff.

This time last year, Cullman County’s unemployment rate was at 2.2 percent, one of the lowest in the state. As of November, the county’s jobless rate was slightly higher at 2.4 percent, still among the lowest in the state.

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Those numbers don’t tell of the resiliency of local businesses and workers in the face of a global pandemic.

When Gov. Kay Ivey issued a Stay at Home order in April that shut down all but essential businesses for a month, the fate of businesses and restaurants was uncertain. What was certain was that everyone wanted stores to reopen.

Sen. Garlan Gudger, serving on a subcommittee chaired by Lt. Gov. Will Ainsworth, collected more than 250 responses in less than 24 hours from agriculture, poultry, real estate and event venues to a survey about re-opening Alabama’s economy.

“We’re trying to find a common sense, business approach to what makes sense on restarting this economy,” he said at the time.

When stores did reopen, it was with occupancy restrictions and safety regulations in place. By this time, several small businesses were able to shift to online sales and some of Cullman’s larger industries – notably Jelco and HomTex – had pivoted their operations to manufacture personal protective equipment in high demand across the globe.

Cullman residents rallied around local businesses, especially restaurants that were still unable to open their dining rooms. They ordered take out and patronized drive-thrus to keep restaurants serving.

Local and state government, too, lent their support to businesses. Along with getting state grants, HomTex received a $1.5 million loan from the city of Cullman and the county’s two industrial boards so the Cullman-based business could make a $5 million capital investment to expand operations, making it the largest domestic producer of masks in the United States and adding between 80-120 jobs. Less than two months later, HomTex repaid the loan.

Cullman County businesses applied for millions of dollars in loans from the federal paycheck protection plan (PPP). Loans will be forgiven as long as they are used to cover payroll costs, mortgage or rent payments and utilities, and as long as the number of employees and salary levels are maintained.

The third quarter of the year brought more good news for Cullman as Reliance Worldwide announced it’s once again expanding its operations in Cullman. The company broke ground on its latest project, a new 300,000-square-foot distribution facility off of Highway 69. The project is estimated to have a $24 million economic impact and create 130 new jobs.

Cullman Economic Development Agency Director Dale Greer credits the county’s economic resiliency to the business community and workers.

“We have great economic diversity,” he said. “We have great manufacturers here, and our retail sales are up in a pandemic. The circumstances here are so much better than many other places.”

He credits the workforce, too. “We have a history of people who want to work,” he said.