Alabama has again been named one of the nation’s top 10 states for doing business, moving up to No. 7 in Area Development magazine’s 2026 Top States for Doing Business report.

Gov. Kay Ivey announced the ranking Sept. 30, noting that Alabama improved from No. 8 in both 2025 and 2024. A news release from her office said that the state also earned three No. 1 rankings in key categories and placed in the top 10 in 15 of the report’s 20 location factors.

“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 is a leading publication covering corporate site selection, facility planning and economic development. Its annual survey evaluates 20 factors that companies consider when choosing locations for investment.

Alabama received the following rankings:

No. 1 — Property Tax Environment
No. 1 — Overall Cost of Doing Business
No. 1 — Labor Cost Competitiveness
No. 3 — Business Incentives Programs

No. 4 — Regulatory Environment
No. 4 — Permitting and Development Predictability
No. 5 — Cooperative Local and State Government
No. 5 — Workforce Training Programs
No. 6 — Energy Availability & Grid Capacity
No. 7 — Overall Speed-to-Market
No. 7 — Site Readiness Programs
No. 7 — Availability of Industrial Sites and Buildings
No. 8 — Energy Cost
No. 8 — Access to Skilled Manufacturing Labor
No. 10 — Engineering Talent and Industry Cluster Strength

The latest ranking follows a record-setting 2025 for Alabama economic development. During the year, Ivey announced $14.6 billion in new investments from 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 efforts include about $300 million invested in site development across 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,” continued Secretary McNair. “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.”

The state’s top 10 rankings in workforce-related categories also underscore the role of worker training in Alabama’s economic development strategy.

“Alabama’s competitiveness isn’t just about low taxes or incentives. It’s rooted in our people.” said Alabama Industrial Development Training Executive Director Kevin Taylor. “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.”

Ivey made economic development a priority on her first day in office, and the administration points to Alabama’s continued investment, job creation and national rankings as evidence that strategy is delivering results. The state continues to build a reputation as a competitive location for companies considering major investments and expansion.