News Summary

Alabama has improved its ranking in CNBC’s ‘Top States for Business’, now standing at No. 19. The state’s success is largely attributed to advancements in workforce development, with notable scores in cost of living and business friendliness. However, challenges in access to capital and healthcare persist, as does a decline in infrastructure ratings. Governor Kay Ivey’s initiatives aim to enhance the business climate and modernize the energy grid, particularly in rural areas. Overall, Alabama’s mixed economic indicators highlight areas for growth and improvement.

Alabama Rises to 19th in CNBC’s 2025 “Top States for Business” Rankings

Alabama has climbed to No. 19 in CNBC’s 2025 “America’s Top States for Business” rankings, improving one position from its 2024 standing. The state achieved a total score of 1,337 points out of a possible 2,500, driven primarily by enhancements in workforce development despite ongoing challenges in capital access and quality of life.

Key Rankings and Scores

The CNBC rankings evaluate each state based on 135 metrics across ten categories, including cost of doing business, workforce, quality of life, and infrastructure. Among Alabama’s notable achievements, the state excelled in:

• Cost of Living – Ranked No. 6
• Business Friendliness – Ranked No. 13

However, the state faced difficulties in accessing capital, slipping to No. 40, and quality of life issues, ranking No. 44. This contrasts with Alabama’s improved workforce score, which jumped from No. 24 in 2024 to No. 16 in 2025, reflecting successful investments in job training and workforce development initiatives.

Competitive Landscape

The top ten states in the rankings include North Carolina, Texas, Florida, Virginia, Ohio, Michigan, Georgia, Tennessee, Indiana, and Minnesota. This shift signifies Alabama’s competitive position as it works to create a favorable environment for both existing industries and new businesses.

Challenges Ahead

Despite notable progress, Alabama continues to grapple with significant challenges. A marked decline in infrastructure ratings was evident, with Alabama dropping from No. 8 to No. 28. Alongside this, issues related to healthcare access, elevated crime rates, and chronic health problems remain pressing concerns for the state.

Governor Kay Ivey, upon taking office in 2017, has made prioritizing Alabama’s business climate a central focus, leading to initiatives aimed at bolstering the economy and infrastructure. Recently, she signed the Alabama Energy Infrastructure Bank into law under the Powering Growth Act of 2025, aiming to modernize the state’s energy grid. The act specifies that at least 40% of its funding will target rural areas until 2030.

Economic Indicators

Alabama’s economic landscape reflects a mixed picture in terms of taxation and employment. The corporate tax rate stands at 6.5%, accompanied by a maximum individual income tax rate of 5%. As of May 2025, the unemployment rate is 3.3%, indicating a stable job market. Scores across various categories generally ranged from C to B+, highlighting areas for growth as well as ongoing challenges.

Conclusion

Enhancements in the workforce and overall economic policies have contributed to Alabama’s improved ranking in CNBC’s annual assessment. Nevertheless, to solidify its position and improve quality of life, the state must confront the infrastructure and healthcare issues that continue to challenge its growth and appeal to potential businesses.

Deeper Dive: News & Info About This Topic

• CNBC: Top States for Business 2025
• Alabama Daily News: CNBC Ranks Alabama No. 19 for Business
• Alabama Reporter: Alabama Climbs to 19th in CNBC Business Rankings
• Wikipedia: Alabama
• Google Search: Alabama business rankings

Author: STAFF HERE HUNTSVILLE WRITER

The HUNTSVILLE STAFF WRITER represents the experienced team at HEREHuntsville.com, your go-to source for actionable local news and information in Huntsville, Madison County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Panoply Arts Festival, Rocket City Brewfest, and Huntsville Comic & Pop Culture Expo. Our coverage extends to key organizations like the Huntsville/Madison County Chamber of Commerce and HudsonAlpha Institute for Biotechnology, plus leading businesses in aerospace, defense, and manufacturing that power the local economy such as Boeing, SAIC, and Mazda Toyota Manufacturing. As part of the broader HERE network, including HEREBirmingham.com, we provide comprehensive, credible insights into Alabama's dynamic landscape.