Economy Matters

Red Bay, Alabama, is a small town in a fortunate position in the United States: a place where businesses are connected to domestic and international marketplaces—and it's among the reasons why Atlanta Fed president Raphael Bostic intends to visit Red Bay and meet with the area's business and civic leaders. Bostic wants to hear their perspectives on the economy and share with them his thoughts about how the Federal Reserve works to help foster an economy that works for everyone.

Big manufacturing and agricultural operations in and near Red Bay dominate the local economic landscape. Manufacturing alone employs as many as half the workers in the greater Red Bay area, according to the US Census Bureau. A nearby chicken-processing facility reports its workforce at 501 to 1,000 employees. The city's population of about 3,200 residents is said to double when all the workers are in town, commuting from homes elsewhere in Alabama and Mississippi.

Tiffin Motor Homes remains family-operated after its acquisition in 2020 by Indiana-based Thor Industries. Tiffin specializes in luxury recreational vehicles (RVs) sold in US and Canadian markets. Sunshine Mills Inc. produces pet food sold across the United States and in 30 other countries. Sunshine Homes builds factory-built manufactured and modular houses for installation in 15 states. Just east of Red Bay lies a poultry products facility owned by Pilgrim's Pride Corporation, a Brazilian company that provides products to the United States, Mexico, and more than 120 other countries.

These large companies have built or attracted a satellite system of suppliers that help provide inputs for the finished products. Tiffin established its own supply chain for windows, fiberglass components, cabinets, and doors. Pilgrim's relies on independent growers to raise live chickens processed in its facility located south of Russellville, the county seat of Franklin County, where Red Bay is located.

Not to be overlooked in Red Bay's economy are the mom-and-pop businesses and local banks that serve them and others in the area. The service sector of plumbers, carpenters, HVAC workers and electricians, and others is an important contributor to the city's quality of life and economy, according to Brad Bolton, president and CEO of Community Spirit Bank, in Red Bay.

A community ready to share its varied views

Red Bay's community representatives will have a chance to share their perspectives on the economy with the Atlanta Fed president and the Atlanta Fed economic development team traveling with him in August. Bostic and the local leaders are slated to interact at four events: a luncheon talk with a local leader and three panel discussions on topics including an economic overview of the area, workforce development, and the local banking environment.

In Red Bay, Bolton expects Bostic and the Atlanta Fed team will gain a greater understanding of the economy and the perspectives of a small Alabama town with a strong manufacturing and agricultural foundation despite its location off the beaten path. Red Bay is some 70 miles west of I-65, Alabama's economic backbone that connects Huntsville, Birmingham, Montgomery, and the port city of Mobile. However, Red Bay is far from isolated. It's located between two highways that connect to major manufacturing centers in Huntsville and Blue Springs, Mississippi.

"You might look at a map and think Red Bay is flyover country, but you'll never believe the economic hub we represent until you see it with your own eyes," Bolton said. "Even though we're a small city of about 3,200, Red Bay is an American success story."

Looking to the future, mindful of the past

Red Bay's official story begins with the 1907 incorporation of a settlement known as Vinson's Crossroads, according to a report in the Encyclopedia of Alabama. That same year, Red Bay became a stop on the Illinois Central Railroad, and the town prospered as it became a lumber and shipping center. Local farmers grew corn, cotton, and soybeans. The city's agricultural roots continue through the poultry industry, and the 2013 state resolution that proclaims Franklin County as Alabama's watermelon capital. The annual Franklin County Watermelon Festival, in Russellville, features all things watermelon, from a seed-spitting contest to the crowning of 14 watermelon queens, aged newborn to 21 years. (Despite the festival's name, the event began in 1981 to help farmers sell their corn harvests.)

Tourism contributes to the local economy in other ways. The Hallelujah Trail guides visitors through Red Bay and 31 other communities in north Alabama to see churches that meet criteria including still being active and at least 100 years old. The program was funded with grants from the Appalachian Regional Commission (ARC), the Alabama Bureau of Tourism and Travel, and the Alabama Mountain Lakes Tourist Association. Almost an entire floor of the Red Bay Museum is devoted to country music icon Tammy Wynette, who spent part of her childhood in the town. RV parks fill with vehicles, including Tiffin vehicles in town for service at the plant. In Franklin County, hunting and fishing are popular pastimes, as are hiking and camping, as well as water activities on Bear Creek Reservoir.

The workforce in the town's economy is largely local, Bolton said. The quality of instruction in the Franklin County school system is "second to none," he said, and, although the facilities are aging, "they are continually being improved and expanded by the school system." Education beyond high school is available within an hour's drive of Red Bay, at Northwest Shoals Community College, with campuses in Phil Campbell and Muscle Shoals, at the University of North Alabama in Florence, and at Itawamba County Community College, about 25 miles away in Fulton, Mississippi.

Demographic trends in flux

Although the census provides a general outline of the demographics in Red Bay, the ARC provides another economic indicator, which is the designation of Franklin County as "transitional," meaning that based on a comparison of three economic indicators—unemployment rate, per capita market income, and poverty rate—it hovers between the nation's top 25 percent and worst 25 percent. (The ARC designates most counties in north Alabama as "transitional.")

The census reports figures for the Red Bay Census County Division (CCD), a classification used in 21 states where the boundaries of civil divisions don't lend themselves to reporting statistical data. The Red Bay CCD is 130 square miles, more than 10 times the size of Red Bay, while Franklin County covers 634 square miles. Even at these levels, estimates vary significantly in the latest census data:

• Median household income: Red Bay, from $61,144 to $31,732; Franklin County, $56,742 to $46,244.
• Educational attainment, bachelor's degree or higher: Red Bay, 29.5 percent to 17.3 percent, Franklin County, 16.8 percent to 13 percent.
• Education attainment, high school or equivalent, age 25 and older: Red Bay, 51.4 percent to 35.2 percent; Franklin County, 42.5 percent to 36.3 percent.
• Employment, industry, civilian and aged 18 years and older, Manufacturing: Red Bay, 51 percent to 34.2 percent; Franklin County, 35.2 percent to 27.6 percent.

Bostic travels frequently to see and hear in person from civic and business leaders in the Sixth District, comprising Alabama, Georgia, and Florida and parts of Louisiana, Mississippi, and Tennessee. Since the COVID-19 pandemic tapered off, Bostic has renewed his travels to visit with local leaders in areas including Miami; Florida's Space Coast; Meridian, Mississippi; Jacksonville, Mobile, and Hale County.

Bolton promotes Red Bay's economic development with the informed perspective of a second-generation community banker whose father serves as chair of the closely held Community Spirit Bank. Bolton serves on the Red Bay City Council, as his father did before being elected mayor for a now-expired term. Bolton is also a past chair of the Independent Community Bankers of America. "Without small banks, small towns would not exist," Bolton said. He expects to represent Red Bay to Bostic as he would to a site selection team.

"You're looking at a very business-friendly mayor and council who continue to invest in buying land for future economic needs," Bolton said. "The infrastructure is in place for water, sewer and gas. We sit on the TVA [Tennessee Valley Authority] power system, which is a great infrastructure for industry. We have a quality workforce. And we're blessed with great a quality of life."

David Pendered

Staff writer for Economy Matters