Prominent sectors and key drivers of the state’s economy like aerospace, automotive, and biotechnology are key drivers of Alabama's economy.
What are the reasons for doing business in Alabama?
In order to support workforce development for the state’s new and expanding businesses, Alabama created the Alabama Industrial Development Training (AIDT). AIDT is a division of the Alabama Department of Commerce and provides services such as pre-employment screening and training.
Alabama also has a relatively low tax burden, which makes it an attractive place for businesses to locate. The state offers a corporate income tax rate of 6.5% and has a graduated individual income tax, with rates ranging from 2.00 percent to 5.00 percent.
What is the cost of doing business in Alabama?
Compared to other states, the cost of doing business in Alabama is relatively low. The state offers competitive labor costs, affordable real estate options, as well as a low cost of living.
What is the state of Alabama’s infrastructure?
In a recent report, Alabama civil engineers provided an overall grade or “C-” for various categories of infrastructure. However, ports, energy, and railroads all received a “good, adequate for now” “B” grade.
What are some challenges for doing business in Alabama?
Attracting skilled talent can be a challenge due to a higher demand for jobs in comparison to the available workforce. Additionally, the labor participation rate, which measures the proportion of individuals aged 16 and above who are either employed or actively seeking employment, remains relatively low. Recent anti-diversity or “discriminatory legislation” may be a consideration for some companies. Business advocacy groups have proposed racial and social equity control at the local level in an effort to help foster growing tech and other job markets.