Alabama Ranked Among Top 10 States for Business
On Wednesday, Gov. Kay Ivey shared that Alabama has secured a spot in the top 10 states in the nation for business, according to “Area Development” magazine.
This recognition highlights the state’s robust economic landscape and favorable business climate. For the 2025 evaluations of business environments, Alabama came in 8th overall, performing particularly well in areas crucial for attracting investments and fostering job creation. Notably, the state has ranked first for property taxes and appears in the top 10 for several other categories, including the overall cost of doing business, where it ranks third.
Ivy remarked, “Alabama’s high rankings in this respected national survey confirm what we already know. Our state is open for business and built for success. By keeping taxes low, cutting red tape, and investing in people and infrastructure, we created an environment where businesses can thrive and our communities can grow.”
The annual survey assesses state performance on various economic development metrics such as tax structure, incentives, workforce preparation, and site availability. Here’s how Alabama ranked:
- No. 1 – Preferred fixed asset tax
- No. 3 – Overall cost of doing business
- No. 3 – Preferred regulatory framework
- No. 4 – Business incentive program
- No. 6 – Cooperative local and state governments
- No. 6 – Site preparation program
- No. 7 – Workforce training program
- No. 7 – Site availability
- No. 9 – Energy cost
Commerce Secretary Ellen McNair stated, “This recognition reflects our continued commitment to promoting an Alabama pro-growth environment. With competitive incentives and respected workforce training programs, Alabama continues to show that we’re not just participating in the economic growth competition; we’re leading it.”
The release from Ivey noted that this strong ranking is indicative of Alabama’s capacity to draw significant projects in key sectors such as automotive, aerospace, chemicals, and advanced manufacturing.
Ivy expressed pride in Alabama’s achievement, saying, “This is a moment of pride for Alabama and a signal to the world that we are ready for the next thing. Whether you’re a global manufacturer or a high-tech startup, Alabama has the people, programs, and partnerships to support your business growth.”
Alabama was ranked 8th in the previous year’s report and has consistently appeared in the top 10 during Ivey’s governorship.
The report also observed that this year’s rankings reflect a vision for dynamic economic development, addressing the need for adapting to timelines, infrastructure, and workforce constraints. The panel concluded that merely offering low taxes and generous incentives won’t suffice; it’s about how effectively states can respond to swift project demands.
With a series of significant economic developments on the horizon, Alabama appears to be gaining momentum, with a recent announcement of a growth project projected to generate nearly $2 billion in new capital investments.
