Top 10 most business-friendly cities in Alabama

The Alabama Policy Institute, a conservative think tank located in Birmingham, Ala., just released their annual list of the most business-friendly cities in Alabama, and it contains a few surprises.

“In order for Alabama to excel in an increasingly competitive global marketplace, Alabama must be as attractive as possible to businesses looking to establish or grow operations in the state.” API explains in the introduction to their list. “This report looks at a number of factors: What cities have the best tax policy? Which have low costs of living and crime rates? What cities have experienced the most year-over-year population and job growth. What type of economic vitality do cities have, including the average incomes for local residents? API answers those questions in this report.”

After digging into the data, Millbrook, Ala., emerged as the most business-friendly city in the state.

Located in Elmore County, Millbrook finished 4th in both Economic Vitality and Business Tax Burden categories, 34th in Community Allure and 7th in the category of Transportation Infrastructure, for a composite score of 75.62 out of 100 possible points. That’s a 4.67 point jump from Millbrook’s score last year.

Prattville, located in Autauga County, came in a very close second with a score of 75.46, a massive 10 point spike over the last 12 months. Prattville’s outstanding rankings in Community Allure (2nd), Transportation Infrastructure (5th) and Business Tax Burden (6th) are helping the city attract residents who are both educated and employed.

Foley, located in Baldwin county finished in 3rd place, thanks in large part to its #1 ranking in the Business Tax Burden category. It was held back by its below-average standardized test scores in the Alabama Reading and Math Test (22nd) and its low Transportation Infrastructure rank (42nd).

With the exception of Montgomery (#8), the Top 10 is noticeably devoid of Alabama’s most well-known and largest cities. That’s mainly due the the high tax burden in Alabama’s major metros, especially Birmingham.

But the job-killing policies of some of the state’s biggest cities can’t compare to the nightmare of trying to operate a company in Alabama’s least business-friendly city, Selma.

API explains:

Selma’s next-to-last showing in Economic Vitality is the result of growing unemployment, a shrinking population, and one of the lowest per-capita incomes in Alabama. An equally low score in Community Allure is the product of Selma having a violent crime rate almost two-and-a-half times the average of the municipalities surveyed in this report. Education outcomes are also depressed, with the lowest proportion of students in the state scoring well on standardized tests. The city’s workforce is also less prepared than much of the rest of the state, with significantly fewer adults age 25 or older possessing a high school diploma or better. To its credit, the cost of living in Selma is substantially below the state average, but this was not enough to keep the city from being the worst for business in Alabama.

So without further ado, here are the top 10 most business-friendly cities in Alabama:

1. Millbrook
Overall score: 75.62
Economic vitality: 78.70
Business tax burden: 81.02
Community allure: 51.72
Transportation infrastructure: 89.51

2. Prattville
Overall score: 75.46
Economic vitality: 68.41
Business tax burden: 80.33
Community allure: 69.66
Transportation infrastructure: 89.90

3. Foley
Overall score: 74.91
Economic vitality: 78.06
Business tax burden: 91.47
Community allure, 55.73
Transportation infrastructure: 60.04.

4. Daphne
Overall score: 69.42
Economic vitality: 64.14
Business tax burden: 76.06
Community allure: 63.64
Transportation infrastructure: 76.14

5. Cullman
Overall score: 69.26
Economic vitality: 59.48
Business tax burden: 86.74
Community allure: 61.87
Transportation infrastructure: 66.98

6. Helena
Overall score: 68.30
Economic vitality: 78.12
Business tax burden: 48.37
Community allure: 71.57
Transportation infrastructure: 80.92

7. Troy
Overall score: 67.19
Economic vitality: 66.83
Business tax burden: 80.56
Community allure: 53.23
Transportation infrastructure: 59.92

8. Montgomery
Overall score: 63.90
Economic vitality: 46.95
Business tax burden: 75.12
Community allure: 53.76
Transportation infrastructure: 94.55

9. Fairhope
Overall score: 63.42
Economic vitality: 53.21
Business tax burden: 78.47
Community allure: 54.55
Transportation infrastructure: 68.96

10. Pell City
Overall score: 62.85
Economic vitality: 76.44
Business tax burden: 45.45
Community allure: 59.09
Transportation infrastructure: 70.99

What do you think about the list? Do you agree? Let us know in the comment section below or by tweeting @YHPolitics.

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