Alabama moved up to No. 7 in the nation for doing business in Area Development’s 2026 rankings, highlighting the state’s business climate, workforce and infrastructure.
Alabama earns several top rankings
The state received three No. 1 rankings in the survey for its property tax environment, overall cost of doing business and labor cost competitiveness.
Alabama also ranked No. 3 for business incentive programs and No. 4 for its regulatory environment, permitting and development predictability.
Other strong scores included No. 5 for cooperation between state and local governments and workforce training programs, along with No. 6 for energy availability and grid capacity.
Investments continue across the state
The ranking comes as Alabama reports billions of dollars in new business investment and thousands of new jobs.
Companies announced about $14.6 billion in new investments and more than 9,000 jobs, according to the governor’s office.
The state has also supported roughly $300 million in site development in recent years.
The rankings also recognized Alabama for its availability of industrial sites and buildings, site readiness programs and speed to market.
Workforce and infrastructure remain key
Alabama’s other rankings included No. 8 for energy costs and access to skilled manufacturing workers and No. 10 for engineering talent and industry cluster strength.
State economic development officials said companies increasingly consider factors such as workforce skills, reliable energy, development-ready sites and predictable permitting when choosing where to invest.
The latest ranking adds to Alabama’s efforts to attract new industries and strengthen its position as a destination for business investment.
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