Alabama continues to earn national recognition as a leading destination for business investment, with Area Development magazine ranking the state among the top performers in its 2025 Top States for Business report. The annual ranking highlights states that excel in attracting and supporting economic growth.
Georgia secured the top spot for the 12th consecutive year, while Alabama joined South Carolina, Texas, North Carolina, and Ohio in the top five. The recognition underscores Alabama’s steady position as a pro-growth state, despite being ranked No. 19 earlier this year in CNBC’s Best States for Business.
“Speed, workforce alignment, and energy infrastructure now define the best states for doing business – not just incentives or tax breaks,” the report explained. New methodology this year split energy infrastructure into two categories—availability and cost—reflecting the challenges of a modernized grid.
The report also emphasized the growing importance of water access, permitting speed, and site readiness, which are increasingly decisive factors in large-scale investment decisions. States that ranked highest were not just “pro-business,” the study noted, but “aligned” with the evolving needs of industries.
Alabama performed especially well across 15 categories measured. The state earned top 10 rankings in eight areas, including favorable regulatory framework (third), overall cost of doing business (third), business incentives programs (fourth), site readiness programs (sixth), cooperative state and local government (sixth), availability of sites (seventh), workforce training programs (seventh), and energy cost (ninth).
This recognition reinforces Alabama’s efforts to attract new employers, expand its industrial base, and strengthen infrastructure. State leaders have prioritized workforce development and regulatory efficiency as key drivers of future investment, aligning Alabama with industries seeking both skilled labor and cost-effective operations.
