HUNTSVILLE – “The secret is out,” said Sean Kelly, Huntsville Market Executive for Regions Bank, describing the city’s rapid rise as a growth market.
Kelly joined Chief Economist Richard Moody and Chief Investment Officer Alan McKnight in a conversation with business and community stakeholders this week, sharing their outlook for Huntsville, North Alabama, and the broader economy in 2025.
Huntsville is now one of the fastest-growing markets in Regions’ 15-state footprint and among the fastest-growing in the country. Moody said the city’s growth stems from a combination of factors: a highly skilled workforce, industrial diversity, well-developed transportation infrastructure, and a lower cost of living and doing business compared to larger metros like Atlanta, Nashville, and Charlotte.
“People have caught on to Huntsville,” Moody said. “Unlike other big cities where in-migration has slowed, Huntsville continues to attract talent and companies.”
Kelly highlighted industries driving local momentum, including cybersecurity, missile defense, and precision manufacturing, all benefiting from both federal priorities and private investment.
McKnight noted that the broader U.S. market continues to support Huntsville’s growth, describing the nation as “the best house in a bad neighborhood” compared with slower-growing regions abroad.
“So when you compare us to places like Japan and the Eurozone and even places like China that historically seen higher growth rates or at least in the last couple decades, we actually look pretty good,” he said. “And that’s really the foundational support for the growth in the market.,”
Looking ahead, McKnight pointed to emerging sectors where growth is likely to continue, including communications, utilities that support artificial intelligence and data centers, and specialized industrial manufacturers.
“Many of those sectors are already thriving right here in North Alabama,” he said.
On monetary policy, Moody explained why the Federal Reserve has not yet cut interest rates despite signs of slower growth. The Fed has focused on inflation risks, but with the labor market softening, Moody expects modest reductions in the near term.
“We do think they’ll cut at the September meeting,” he said, noting that any reduction will likely be measured.
Locally, Kelly said Regions’ clients remain optimistic. After a cautious start to the year due to tariff and tax concerns, businesses are investing and expanding pipelines.
“The challenge is managing growth, ensuring we have the infrastructure, housing, and workforce to support it,” he said.
Growth extends across North Alabama. Limestone County is one of the fastest-growing counties in the state, and areas like Decatur, Athens, and the Shoals are also seeing new manufacturing projects, reinforcing Huntsville’s role as an economic engine for Alabama.
For Regions Bank, the conversation highlighted the institution’s 190-year history in Alabama and its long-standing commitment to supporting local growth.
“We bring the resources and breadth of a large financial institution at the local level,” McKnight said. “We call it local with specialty expertise, and that’s really our special sauce, and we live by it.”
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