The Decibel What Canada needs to learn from Alabama
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Mar 6, 2026 Tim Kiladze, Financial reporter and columnist for The Globe, recounts his on-the-ground reporting from Alabama. He unpacks why Alabama’s GDP per capita overtook Canada. He highlights Huntsville’s tech boom, tax and permitting strategies that sped projects, and limits of GDP as a measure when health, education and inequality are at play.
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Per Capita GDP Can Be Misleading
- Per capita GDP divides total production by population, so Canada's ~US$65,000 per person can be similar to Alabama's despite Canada being a G7 country.
- Alabama's rapid rise looks larger because it started from a much lower base and has recently added high-value industries.
Huntsville's Unexpected Tech Boom
- Huntsville surprised Tim as a high-tech hub with aerospace, biotech and a recent US$6 billion Eli Lilly plant win.
- The mayor listed AI, cyber, quantum and geospatial as drivers that helped attract scientists and high-end jobs.
Cheap Land, Fast Permits Spark Industry Clusters
- Alabama used aggressive tax incentives and fast permitting to attract auto and biotech firms, creating regional supplier networks.
- Mercedes arrived in 1993, then successive manufacturers and suppliers clustered, matching Ontario's car output.