Alabama ranks among top states for business in new site selectors survey

“These high rankings indicate that Alabama offers the advantages sought by companies when executing their growth plans.”

Area Development’s 2021 “Top States for Doing Business” rankings reflect the results of a recent survey asking leading consultants to industry to provide top state picks in 13 categories that impact companies’ location and facility plans.

The states in each category were ranked based on their number of mentions in the particular category, and total mentions in all 13 categories were calculated to rank the top 20 states overall.


Secretary Canfield said Alabama’s individual Top 10 category rankings reflect the state’s comprehensive approach to economic development:

  • Speed of Permitting – No. 1
  • Overall Cost of Doing Business – No. 2
  • Business Incentives – No. 3
  • Favorable Regulatory Environment – No. 3
  • Workforce Development Programs – No. 5
  • Cooperative & Responsive State Government – No. 6
  • Available Real Estate – No. 7
  • Site Readiness Programs – No. 8
  • Energy Availability & Costs – No. 8
  • Competitive Labor Environment – No. 9

Writing in Area Development, consultant Alexandra Segers of Tochi Advisors noted that auto industry projects are driving growth in many Southern states, including Alabama. In 2020, companies in the automobile manufacturing sector announced plans to invest over $1.6 billion in Alabama projects, creating more than 2,600 jobs, according to estimates.

“The auto industry is booming and lots of supplier projects are also happening,” Segers writes. “Why are such projects selecting these regions? These states offer a business-friendly environment, competitive utility rates, availability of skilled labor, excellent training programs, and fast permitting processes. As projects have to be realized much faster than in the past, an easy regulatory environment is very attractive to clients.”

The Area Development rankings align with a productive year for Alabama’s economic development team, which overcome the substantial challenges posed by the COVID-19 pandemic to attract projects with almost $5 billion in new capital investment during 2020.

These projects will create an anticipated 10,000 jobs across the state and inject economic vitality into many communities, according to an analysis prepared by the Alabama Department of Commerce.

In June, Area Development magazine selected Alabama for its Gold Shovel Award for economic development success in manufacturing during 2020. Alabama was one of just three states to claim the award.

Alabama’s ability to overcome the complex economic development challenges posed by the COVID-19 pandemic also recently earned the state a Top 10 ranking in Site Selection magazine’s annual Governor’s Cups analysis.

Additionally, Alabama in July earned the No. 5 spot in Business Facilities magazine’s flagship business climate ranking, while also earning high marks for workforce training, manufacturing employment and output, and the horsepower of the state’s auto industry.

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