Businesses based in countries around the globe continue to find a welcoming home in Alabama, as the state’s foreign direct investment (FDI) reached $3.5 billion last year, driving job growth in several key industries.
Communities across the state attracted 50 FDI projects during 2024, resulting in more than 3,700 job commitments in automotive manufacturing plants, shipyards, sawmills, and other workplaces, according to a report from the Alabama Department of Commerce.
FDI represented almost exactly one half of the total of $7 billion in new capital investment generated by economic development projects announced in Alabama last year, the report shows.
“Foreign direct investment has become a major catalyst for economic growth in Alabama, fueling job creation and strengthening our position in global markets,” said Ellen McNair, Secretary of the Alabama Department of Commerce. “FDI into Alabama reflects the confidence that international companies have in our workforce, infrastructure, and business climate.
“This track record stands as a powerful testament to Alabama’s strategic focus on cultivating global partnerships,” she said.
McNair is leading a Commerce team at this week’s SelectUSA Investment Summit, the nation’s highest-profile event dedicated to promoting FDI in the U.S. The event, hosted by the U.S. Department of Commerce, is being held in National Harbor, Maryland.
Since its inception, the SelectUSA Investment Summit has attracted thousands of international companies and economic development representatives , generating over $135 billion in new investment projects supporting more than 105,000 jobs across the United States and its territories.
Joining McNair at the event from Commerce are Christina Stimpson, Chief Officer of Global Business; Gary Walton, Foreign Affairs Officer in Global Business; Angela Smith, Senior Project Manager; and Nick Shaver, Business Development Specialist.
At SelectUSA, they will be working alongside representatives from a number of statewide economic development stakeholders and allies.
Global destination
Clearly, FDI has operated as a powerful growth engine for Alabama, with foreign companies announcing nearly $30 billion in new capital investment in the state since the beginning of 2015, according to Commerce data.
During that time frame, FDI projects in Alabama resulted in almost 40,000 new jobs, according to the data.
“Alabama is deeply committed to fostering strong international business relationships and creating an environment where global companies can thrive,” Stimpson said.
“We actively work to attract and support foreign investment through targeted outreach, responsive service, and collaboration with our local partners.”
From the beginning of 2015 to the end of 2024, Alabama attracted 246 FDI greenfield projects, according to SelectUSA data.
Auto-related projects led the way, with 61 announced projects during that time frame. Other top categories were industrial machinery, metals, plastics, and chemicals, according to SelectUSA.
During the decade, Germany was the top foreign investor in Alabama, accounting for 17% of projects. Japan was next, with 13%, followed by Canada (also 13%), South Korea (12%), and France (9%), SelectUSA says.
“Foreign direct investment has played a vital role in shaping Alabama’s economy into a global contender,” said Walton of Commerce’s Global Business Office. “International companies bring not only capital, but also innovation, new technologies, and valuable career opportunities for our citizens.
“We’re proud to be a destination where global companies can thrive,” he added.
Courtesy of Made in Alabama
