News Summary
Alabama has achieved the No. 8 position in Area Development magazine’s 2025 Top States for Doing Business report, standing out for its favorable property tax and strong rankings in multiple business categories. The state has maintained its position from the previous year, reflecting its consistent economic performance and commitment to attracting investments. Recent initiatives have bolstered economic growth, promising nearly $2 billion in new capital investments across various industries. Governor Kay Ivey emphasizes the importance of a skilled workforce and infrastructure in sustaining this positive momentum for businesses.
Alabama has secured the No. 8 position in Area Development magazine’s 2025 Top States for Doing Business report, marking a significant achievement for the state in its ongoing efforts to bolster economic growth and attract investment opportunities.
In addition to its overall ranking, Alabama distinguished itself by earning the top spot for Favorable Property Tax and placing in the top ten in eight other critical categories, highlighting its business-friendly environment. These categories included:
- No. 3 in Overall Cost of Doing Business
- No. 3 in Favorable Regulatory Framework
- No. 4 in Business Incentive Programs
- No. 6 in Cooperative Local and State Government and Site Readiness Programs
- No. 7 in Workforce Training Programs and Availability of Sites
- No. 9 in Energy Cost
The rankings reflect Alabama’s strong economic fundamentals and the effectiveness of its policies in creating an attractive business climate. The results come from an annual survey that evaluates states on essential economic development factors such as tax structure, incentives, workforce readiness, and site availability.
Alabama has maintained its No. 8 status from the previous year, illustrating consistency in its economic performance under the administration of Governor Kay Ivey. The state has consistently placed in the top ten of the publication’s annual ranking during her tenure, showcasing its resilience and adaptability to changing corporate priorities.
Recent economic development initiatives have significantly strengthened Alabama’s position, attracting major projects across various industries, including automotive, aerospace, and advanced manufacturing. As of September 2025, nearly $2 billion in new capital investment has been announced through these high-impact projects, emphasizing the state’s commitment to fostering a pro-growth environment and creating job opportunities.
Area Development magazine noted that to enhance their rankings, states must effectively align key elements such as land, labor, logistics, and leadership. This alignment is essential for improving overall business viability and appeal to global manufacturers and high-tech startups.
Governor Ivey has expressed confidence in Alabama’s capacity to support both established manufacturers and emerging technology firms, underscoring the importance of a skilled workforce and robust infrastructure. The state’s rankings in categories such as workforce training and availability of sites reflect the ongoing efforts to prepare residents for the demands of modern industries.
Alabama’s position as a top contender in the 2025 Top States for Doing Business report serves as a testament to its strategic economic planning and commitment to creating an inviting atmosphere for businesses. The state’s effective policies aimed at attracting investments make it a prime location for companies looking to expand or establish operations, thereby fostering continued economic growth and job creation for years to come.
Deeper Dive: News & Info About This Topic
- Alabama News Center
- AL.com
- Business Alabama
- ABC 33/40
- Made in Alabama
- Wikipedia: Economy of Alabama
- Google Search: Alabama Economic Development
- Google Scholar: Alabama business growth
- Encyclopedia Britannica: Alabama
- Google News: Alabama business report
Author: STAFF HERE BIRMINGHAM WRITER
The BIRMINGHAM STAFF WRITER represents the experienced team at HEREBirmingham.com, your go-to source for actionable local news and information in Birmingham, Jefferson County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Sidewalk Film Festival, Sloss Music & Arts Festival, Magic City Classic, and civil rights commemorations. Our coverage extends to key organizations like the Birmingham Business Alliance and the Birmingham Civil Rights Institute, plus leading businesses in healthcare, finance, and manufacturing that power the local economy such as UAB Medicine, Regions Bank, and Encompass Health. As part of the broader HERE network, including HEREHuntsville.com, we provide comprehensive, credible insights into Alabama's dynamic landscape.
