Alabama and several of its metro areas have earned high marks in the 2025 “Business Facilities” Annual Rankings Report, reinforcing the state’s status as a national leader in key industries and a prime destination for business growth.
The influential report — now in its 21st year — evaluates states and metro areas across more than 25 categories that are critical to site selectors and corporate decision-makers focused on expansion and relocation opportunities.
In one of the report’s top honors, Huntsville — Alabama’s renowned “Rocket City” — earned the No. 1 ranking among U.S. cities for Aerospace. The state also ranked No. 4 nationally for Aerospace/Defense Employment, further validating Alabama’s growing role in securing the nation’s future in air, space and defense technologies.
“These rankings underscore what companies across the globe are discovering — Alabama offers the skilled workforce, innovation capacity, and business climate needed to compete and grow in today’s economy,” said Ellen McNair, Secretary of the Alabama Department of Commerce. “From aerospace and automotive to manufacturing and advanced energy, we’re building success stories in every corner of the state, and we’re just getting started.”
In addition to aerospace, Alabama ranked in the Top 10 in multiple categories central to economic growth:
- No. 3 – Customized Workforce Training
- No. 6 – Automotive Strength
- No. 6 – Foreign Direct Investment Competitiveness
- No. 7 – Manufacturing Jobs
- No. 5 – Nuclear Energy Generation
These results reflect the impact of ongoing investments in workforce development, targeted industry recruitment and the support infrastructure that helps companies thrive in Alabama, Secretary McNair said.
Metro area momentum
Alabama metro areas also stood out in the 2025 rankings:
- Huntsville ranked No. 4 for Best Business Climate among large U.S. metros
- Auburn/Opelika claimed the No. 10 spot among small metros for Best Business Climate
- Tuscaloosa ranked No. 10 among small manufacturing hubs
- The Daphne/Fairhope/Foley area landed at No. 6 among the fastest-growing U.S. metros
In addition, Huntsville and the Auburn/Opelika area were recently named recipients of the 2025 Mac Conway Award for Economic Development Excellence, a national honor presented annually by “Site Selection” magazine.
“These honors highlight the breadth of Alabama’s economic vitality — from innovation-driven metros like Huntsville to fast-growing coastal communities and industrial powerhouses like Tuscaloosa,” Secretary McNair added.
“As Alabama continues to build on its competitive advantages, these rankings reflect the state’s growing reputation as a place where industries can rise, companies can scale and communities can prosper.”
Courtesy of Made in Alabama.
