In an effort to improve economic development in the state of Alabama, the Alabama Productivity Center was established on January 1, 1986, on the University of Alabama campus. The mission of the APC is to focus research and educational resources on the enhancement of productivity and quality within Alabama businesses and the state's industry. The Alabama Productivity Center, a non-profit organization, is an outcome of a 1983 joint venture of the University of Alabama and General Motors to save a Tuscaloosa GM plant from closing. The positive experience utilizing university faculty and students to save Alabama jobs led to the establishment and sponsorship by Alabama Power Company and the University of Alabama.

In 1996, APC became home to Region 3 of the Alabama Technology Network (ATN), the Manufacturing Extension Partnership program of the National Institute of Standards and Technology (NIST) for the state of Alabama. Headquartered in Montgomery, the ATN brings together a set of sixteen regional centers covering the entire state and serving the technical assistance and workforce development needs of small- and medium-sized manufacturing firms. The APC’s accomplishments, such as recognition by the National Council for Urban Development and the U.S. Economic Development Administration as an “innovative” and “imaginative” program, demonstrate that the APC is a valuable resource for Alabama businesses.