Alabama has again been named among the nation’s top 10 states for doing business by Area Development magazine, continuing a streak of high rankings in the national publication’s annual analysis.
In the publication’s 2026 Top States for Doing Business report, Alabama ranked No. 7 overall, an improvement from No. 8 in 2025 and 2024. The state also earned three No. 1 rankings in critical categories and scored in the top 10 in a dozen others.
“Alabama is, indeed, open for business,” Governor Kay Ivey said. “This latest ranking by Area Development sends a clear message that Alabama is one of the most business-friendly states in the nation, offering the policies, infrastructure, skilled labor and space for companies to thrive.
“Earning the No. 1 spot in several critical categories shows that our strategy of recruiting investment, preparing industrial sites, developing our workforce and maintaining a competitive business climate is delivering results. I am proud we are a top 10 state for doing business and climbing.”
Area Development is a leading publication covering corporate site selection, facility planning and economic development. Its annual survey includes 20 location factors.
Alabama ranked:
- No. 1 — Property Tax Environment
- No. 1 — Overall Cost of Doing Business
- No. 1 — Labor Cost Competitiveness
- No. 3 — Business Incentives Programs
- No. 4 — Regulatory Environment
- No. 4 — Permitting and Development Predictability
- No. 5 — Cooperative Local and State Government
- No. 5 — Workforce Training Programs
- No. 6 — Energy Availability & Grid Capacity
- No. 7 — Overall Speed-to-Market
- No. 7 — Site Readiness Programs
- No. 7 — Availability of Industrial Sites and Buildings
- No. 8 — Energy Cost
- No. 8 — Access to Skilled Manufacturing Labor
- No. 10 — Engineering Talent and Industry Cluster Strength
Georgia topped the list for the 13th year in a row.
“This year’s rankings show that the strongest states are competing on much more than cost or incentives,” said Dennis Shea, publisher of Area Development. “The states at the top are building broad advantages across workforce, infrastructure, speed to market, energy availability and the ability to execute complex projects. That combination is increasingly important as companies face tighter timelines and greater uncertainty around the resources their facilities need.”
Alabama’s climb up the list follows a record 2025 in which the state announced $14.6 billion in new investments by companies and more than 9,000 new jobs.
“Alabama’s continued recognition by Area Development is a strong validation of the work we are doing to make our state an increasingly competitive place for investment and job creation,” said Commerce Secretary Ellen McNair.
“Companies are looking for more than a favorable tax climate. They need development-ready sites, a skilled workforce, reliable energy, predictable permitting and communities that are ready to move quickly when an opportunity comes their way. Alabama has been making deliberate investments in each of those areas, and these rankings reflect that progress.”
Those investments include about $300 million invested in site development around the state in recent years.
“Our economic development strategy is focused on delivering what companies need to succeed — from preparing industrial sites and strengthening workforce pipelines to maintaining a competitive cost structure and working closely with our local partners,” McNair said. “The result is an Alabama that is positioned to compete for the major investments shaping the future of manufacturing, aerospace, automotive, technology and other high-growth industries.”
Alabama’s top 10 rankings in two workforce categories are also significant, said Kevin Taylor, executive director of Alabama Industrial Development Training.
“Alabama’s competitiveness isn’t just about low taxes or incentives. It’s rooted in our people.” Taylor said. “The economic development success we’ve seen is directly tied to our ability to prepare Alabama citizens for the jobs employers need to fill. A strong workforce development program like AIDT gives companies confidence that they can find the skilled workers to scale operations, meet production schedules, and maintain quality as they grow.”
Courtesy of the Alabama Department of Commerce’s Made in Alabama website.
