If diversity is the recipe to escape a long-term economic downturn, If diversity is the recipe to escape a long-term economic downturn, then the Birmingham, Ala., metro has created the right formula.

The metro has created an economic environment that attracts a broad range of companies from a variety of industries. Clusters of companies in the banking/financial, automotive and high-tech industries have expanded to Birmingham.

When financial services company Wachovia Corp. announced last year that it was purchasing SouthTrust Bank in Birmingham, there was a great deal of concern about how the acquisition was going to impact jobs and capital investment.

However, those concerns were laid to rest when the company decided to build a $400 million data center on 60 acres in a proposed mixed-use site in the metro.

The site, which is owned by the Jefferson County Economic and Industrial Development Authority, has more than 200 acres available for future expansions. Wachovia will be the site’s anchor tenant.

Birmingham is No. 2 in the nation, behind only New York, as the site for headquarters of banking and financial institutions.

That ranking was further strengthened last year when Regions Financial Corp. created 60 executive-level positions in Birmingham after its merger with Union Planters Corp.

Birmingham-based Regions employs almost 2,000 workers in the metro and is one of the nation’s Top 15 financial services providers. The company reaches across 15 states in the South and Midwest and has assets of more than $84 billion.

The metro’s reputation as a major insurance center was also reinforced last year by State Farm’s decision to site one of four new national facilities in Birmingham. The company will consolidate many of its employees from across the country in these facilities.

State Farm will create up to 500 new jobs in Birmingham performing corporate functions such as customer service, monthly billing and specialized claims processes.

Once the consolidation is complete, State Farm will have more than 1,200 employees in Birmingham.

Birmingham Lures Automotive Suppliers

In the decade since Mercedes-Benz decided to build a manufacturing plant in Alabama, the state has become a magnet for foreign automakers looking to expand in the U.S. market.

Honda continues to invest in the state, announcing last year that it will undertake a $70 million expansion of its engine plant in Lincoln, and Hyundai’s first U.S. assembly plant will begin operations in Montgomery this year.

During the past decade, numerous first- and second-tier automotive suppliers have located facilities in the Birmingham metro to take advantage of this growing cluster.

One of the latest is Germany-based Eissmann, a tier-two supplier to Delphi and manufacturer of interior components for Mercedes. The company will open a manufacturing facility in St. Clair County later this year.

The company will employ more than 80 workers with a capital investment of $1.5 million.

AGC Automotive Americas, a just-in-time supplier, will undertake the first expansion in Shelby West Corporate Park. The company will invest $6.1 million to add 35,000 square feet to its existing 50,000 square foot facility.

AGC Automotive is centrally located to Alabama’s automotive manufacturing facilities and distributes glass components to Mercedes, Honda and Hyundai. The expansion will initially create 50 jobs. Eventually, the company will employ 115 workers.

Another industrial park in the metro, The Jefferson Metropolitan Park, landed its third automotive supplier last year when Decoma International began operations in 120,000 square feet of space in a spec building.

The tier-one supplier to Mercedes produces plastic exterior parts. The expansion will create 100 jobs.

High-Tech Firms Grow

The Birmingham metro is benefiting from the growth of Emageon, which added 48 technology-sector jobs in 2004.

Emageon develops software for storing and retrieving digital medical diagnostic images. In November, the four-year-old company filed a registration with the U.S. Securities and Exchange Commission for an initial public offering.

The company employs 115 employees at its headquarters in Hoover.

A cluster of companies in the cell phone refurbishing industry has also grown in Birmingham.

Handoff Wireless will move into a 50,000 square foot facility after outgrowing its existing building. The company will invest $2.1 million and will create 40 jobs.

Once the expansion is completed, Handoff Wireless will employ about 75 workers.

Another cell phone refurbishing company, AGS Technology, is building a $2.5 million manufacturing facility in Homewood.

AGS plans to hire 120 employees specializing in the sales, marketing and repair of commercial electronic products through partnerships with electronic manufacturers.