Alabama has again been named among the nation's top 10 states for doing business by Area Development magazine, ranking No. 7 overall in the publication's 2026 Top States for Doing Business report — an improvement from No. 8 in both 2025 and 2024.
Governor Kay Ivey announced the ranking Wednesday, noting the state also earned three No. 1 rankings in critical categories and scored in the top 10 in a dozen others.
"Alabama is, indeed, open for business!" Ivey said. "This latest ranking by Area Development sends a clear message that Alabama is one of the most business-friendly states in the nation, offering the policies, infrastructure, skilled labor and space for companies to thrive. Earning the No. 1 spot in several critical categories shows that our strategy of recruiting investment, preparing industrial sites, developing our workforce and maintaining a competitive business climate is delivering results. I am proud we are a top 10 state for doing business and climbing."
Area Development covers corporate site selection, facility planning and economic development, and its annual survey includes 20 location factors. Alabama ranked No. 1 in Property Tax Environment, Overall Cost of Doing Business and Labor Cost Competitiveness. It placed No. 3 in Business Incentives Programs; No. 4 in Regulatory Environment and Permitting and Development Predictability; No. 5 in Cooperative Local and State Government and Workforce Training Programs; No. 6 in Energy Availability & Grid Capacity; No. 7 in Overall Speed-to-Market, Site Readiness Programs and Availability of Industrial Sites and Buildings; No. 8 in Energy Cost and Access to Skilled Manufacturing Labor; and No. 10 in Engineering Talent and Industry Cluster Strength.
The climb follows a record 2025 in which Ivey announced $14.6 billion in new investments by companies and more than 9,000 new jobs.
"Alabama's continued recognition by Area Development is a strong validation of the work we are doing to make our state an increasingly competitive place for investment and job creation," said Alabama Department of Commerce Secretary Ellen McNair. "Companies are looking for more than a favorable tax climate. They need development-ready sites, a skilled workforce, reliable energy, predictable permitting and communities that are ready to move quickly when an opportunity comes their way. Alabama has been making deliberate investments in each of those areas, and these rankings reflect that progress."
Those investments include about $300 million in site development around the state in recent years.
"Our economic development strategy is focused on delivering what companies need to succeed — from preparing industrial sites and strengthening workforce pipelines to maintaining a competitive cost structure and working closely with our local partners," McNair continued. "The result is an Alabama that is positioned to compete for the major investments shaping the future of manufacturing, aerospace, automotive, technology and other high-growth industries."
Alabama Industrial Development Training executive director Kevin Taylor said the state's top 10 rankings in two workforce categories are significant.
"Alabama's competitiveness isn't just about low taxes or incentives. It's rooted in our people," Taylor said. "The economic development success we've seen is directly tied to our ability to prepare Alabama citizens for the jobs employers need to fill. A strong workforce development program like AIDT gives companies confidence that they can find the skilled workers to scale operations, meet production schedules, and maintain quality as they grow."