Market Snapshot: Alabama

Market Snapshot: Alabama

50 states in 50 weeks – The new series leverages our vast market intelligence database to bring you powerful AE industry insights. We continue our series this week with Alabama.

Alabama Economic Performance and Outlook Grade: C+

• Economy: C+
• Population: B
• Workforce: C
• Financial/Fiscal Health: C

Alabama’s economy is supported by strong manufacturing, automotive, aerospace, and energy sectors, with a 2024 real GDP of $251 billion growing at a 3.1% rate since 2020. While the state faces challenges with one of the lowest rates of labor force participation (57.6%) in the country, key investments are being made to modernize transportation and utilities infrastructure. With its strategic location, access to major highways, rail systems, and the Port of Mobile, Alabama is well-positioned for growth as a key industrial and logistics hub in the Southeast. The state’s significant federal defense presence has the potential to attract investments in advanced manufacturing facilities, distribution centers, and intermodal transportation networks. See below for additional highlights for Alabama:

• Strategic regions: Birmingham-Hoover Metro, Huntsville, and the Mobile Port Corridor
• Birmingham: Growth in health care and financial services driving demand for commercial developments and mixed-use projects
• Huntsville: Expansion of federal defense contracting, aerospace industries, and research facilities, creating opportunities for industrial and office developments
• Mobile: Investments in port modernization and logistics infrastructure supporting industrial growth and global trade
• Montgomery: Automotive manufacturing and innovation hubs spurring demand for industrial and workforce-related real estate
• Tuscaloosa: Growth in educational facilities and infrastructure tied to the University of Alabama’s development initiatives

For sector-specific data and insights for Alabama or questions about our market intelligence and research services, call/text Rafael Barbosa at 972-266-4955 or email [email protected].

For a comprehensive outlook for 2025, don’t miss the 2025 AE Market Intelligence Webinar on January 28. Click here for details.