Located along the Tennessee River in northwest Alabama, the Shoals area includes Colbert and Lauderdale counties and consists of four main cities — Florence, Tuscumbia, Muscle Shoals and Sheffield.
Leading industries in the area include automotive and advanced manufacturing, and it is an attractive destination for business and industry.
Three recent developments are expected to bring thousands of new jobs to the area.
Submarine components parts manufacturer Hadrian announced plans in March to establish operations in Colbert County with a $2 billion investment that will add 1,000 new jobs.
In May, Virginia Transformer, North America’s largest power transformer manufacturer, announced plans to establish operations in Shoals Research Airpark and create 1,100 new jobs.
And in July, The Lumber Manufactory, a Seattle-based wood processing facility, announced plans to invest $16.25 million in a new plant with 59 new jobs.
The area is celebrated for its music heritage — it is known as the “Hit Recording Capital of the World” — and cultural tourism is another steady economic driver. Florence and Lauderdale County had a record-breaking 9.5% increase in tourism in 2025, according to the Alabama Tourism Economic Impact Report. Capitalizing on that appeal, Florence is focusing efforts to redevelop the downtown area, including building a new $42 million city hall that will be one of the city’s largest public investments. Two new hotels also are in development downtown — the Hotel Wilson, a Tapestry Collection by Hilton property, is expected to open at the end of 2027, and the Reverb by Hard Rock hotel is expected to open by the end of 2028.
“Florence has a lot of momentum right now,” says Florence Mayor Ron Tyler. “Our job is to keep that economic engine moving by supporting good development, recruiting new business and making the kind of investments that will serve this community for years to come.”
In September, the University of North Alabama (UNA) Lions played their first-ever on-campus football game at the new Bank Independent Stadium. Football games, university events and other activities at the stadium, which is within walking distance of downtown Florence, are expected to bring thousands of additional visitors to the area.
“A stadium, by its nature, brings people together,” says Josh Looney, director of athletics at UNA. “Bank Independent Stadium provides UNA and the Shoals community a premier multipurpose venue with a vision of becoming a regional hub for athletics, entertainment and major civic events. This project exemplifies our commitment to elevating the entire university and North Alabama communities while driving long-term economic momentum across our region.”
The new Lauderdale County Agricultural Events Center is expected to be complete by September 2027. The 167-acre complex will host concerts, rodeos, athletic competitions and other large events. The mixed-use development also will be home to the new Lauderdale County Schools Innovation Center, which opened in August; a workforce career training facility; green spaces; restaurants; and a hotel.
The Shoals area is rich in natural beauty, and there are a lot of opportunities to take it in. Popular outdoor recreation destinations include Cane Creek Canyon Nature Preserve and Joe Wheeler State Park, as well as waterfront parks that offer views of the Tennessee River. The Natchez Trace, a protected national scenic byway, has a 33-mile stretch through Colbert and Lauderdale counties.
The following articles provide more information on Lauderdale and Colbert Counties:
Katherine MacGilvray is a Huntsville-based freelance contributor to Business Alabama.
This article appears in the October 2026 issue of Business Alabama.
