High interest rates further add to the cost of borrowing or financing through consumer installment loans. Between August 1999 and August 2000, Alabama's manufacturing sector lost approximately 4,600 jobs. Although most of the job losses were concentrated in nondurable goods producing industries, firms producing durable goods also suffered. There are two factors working against the manufacturing sector. The first is the high value of the U.S. dollar, which makes imported goods very inexpensive.
Domestic producers find it hard to compete on pricing.
The other factor is overcapacity in automobiles, steel, and other fabricated metals products. Domestic overcapacity makes it difficult for Alabama firms to raise prices and compete with cheaper imports. The University of Alabama. The strongest job growth in Alabama is in services- related businesses. From August 1999 to August 2000, services-related industries added 8,500 jobs.