(The Center Square) – Corporate site selection and economic development magazine Area Development again ranks Alabama a leading destination in the 2025 Top States for Business.
Georgia is first for the 12th consecutive year.
Alabama, No. 19 in the CNBC best states for business ratings, was fourth as recently as 2019 and third the year prior. South Carolina, Texas, North Carolina and Ohio rounded out the top five.
“Speed, workforce alignment, and energy infrastructure now define the best states for doing business – not just incentives or tax breaks,” the report says.
The methodology this year changed to split energy infrastructure into “energy availability” and “energy cost.” The report says this best analyzes the “unique challenges posed by the modern grid.”
“We also continue to elevate the importance of water access, permitting speed, and site readiness – all increasingly make-or-break factors in large capital investment decisions,” Area Development said. “The states that perform well aren’t just ‘pro business.’ They’re aligned.”
Across 15 categories judged, Alabama hit the top 10 in them eight times: favorable regulatory framework (third); overall cost of doing business (third); business incentives programs (fourth); site readiness programs (sixth); cooperative local and state government (sixth); availability of sites (seventh); workforce training programs (seventh); and energy cost (ninth).
