Albany Focus

Albany’s economy is likely to perform on par with the U.S. economy. Economic growth may slow in 2025 but it is unlikely to stall, mostly because of success in landing private-sector economic development projects. This is due in part to Albany’s local economic developers, who are expanding the area’s economic base while simultaneously diversifying economic activity.

Last year, the Albany-Dougherty Economic Development Commission announced that automotive supplier GRUDEM will build an auto parts manufacturing facility that will create 65 jobs. And Diamond Door Products announced that it would open a metal door manufacturing facility in Albany, creating 25 jobs. In 2022, Thrush Aircraft announced it will expand production with a new product line and create 125 jobs to meet demand for its agricultural aircraft. Pratt Industries’ $18 million capital expansion at its corrugated box manufacturing facility created about 30 new jobs. And Woodgrain’s $10 million investment to expand its millwork operations in neighboring Lee County created about 150 new jobs.

Outdoor Network, a dealer, distributor and manufacturer of marine and powersports equipment, put $28.1 million into an expansion of its advanced manufacturing facility and distribution headquarters in Albany. The company exceeded its initial announcement of new 92 jobs, as the demand for outdoor recreational vehicles is stronger now than pre-pandemic.

Albany’s diversified economy moderates the ups and downs of the business cycle. Compared to the state and the nation, Albany’s economy is more dependent on government, education, healthcare, retail and agriculture. These are not very cyclical industries. Within manufacturing, Albany is focused on the production of nondurable goods, sales of which are less cyclical than sales of durable goods. Albany’s manufacturing base produces basic consumer staples that households buy, whether the economy grows or shrinks. Procter & Gamble, Molson Coors, Mars Wrigley Confectionary and Georgia-Pacific Lumber are good examples.

Although I expect the national economy to slow, Albany’s economy has a lower economic risk profile than most cities, making it a good place to grow a business and raise a family.

Home page from VisitAlbanyGa.com

Albany is a strong regional transportation hub with quality four-lane highways and Southwest Georgia Regional Airport, which provides direct access to Hartsfield-Jackson Atlanta International Airport. The Albany airport’s new 48,000-square-foot hangar, refinished runways and a new general aviation terminal reinforce the city’s role as a logistics hub for air cargo. That plus an 85-acre tract at the airport that is certified for accelerated development means Albany is well positioned for airport-based economic development.

Despite significant strengths, Albany MSA’s population has been declining. Outmigration thus remains a challenge and the result of too few high-paying, high-tech jobs, which then pushes some of the most educated residents to look elsewhere for jobs.

Albany is slowly moving away from traditional manufacturing and government towards private-sector, service-providing industries. A good example is Albany’s booming healthcare industry. To prosper, Albany will have to pull many more patients from surrounding areas.

Albany’s workforce development initiatives signal future economic growth. Efforts by the Albany Area Chamber in concert with educational institutions and strategic partners will help employers build the pipeline they need.

Albany’s agriculture economy should do well because global demand for ag products will increase faster than supplies. Further development of the city’s food processing industry will help add ag production in the area.

Increases in defense spending will benefit the U.S. Marine Corps Logistics Base Albany. I expect military pay raises to outpace inflation. Over time, the base’s high-tech mission should spur more high-tech development in the private sector of Albany’s economy. There will be more high-tech employment opportunities locally, which should reduce outmigration.

Albany’s housing market is a plus. In early 2024, Albany’s home prices were 55% above their pre-pandemic peak. The year-over-year percentage change was 13%. Despite these gains, Albany’s homes are not overvalued and are unlikely to decline in price. That will sustain growth in consumer spending, especially for home-related goods and services.

Put it all together and Albany’s prospects are good.