If 2025 proved anything about Alabama’s business climate, it’s that momentum has a firm grip on the state in many ways. From record-breaking industrial expansions to high-stakes leadership changes, the past year has been one of investment, innovation and resilience.
The headline news came from Huntsville, where years of political wrangling ended with confirmation that U.S. Space Command will call Redstone Arsenal home — a victory that cements North Alabama’s role in national defense and brings 1,400 high-paying jobs with it. But that was only one of many developments that reshaped the state’s economic landscape.
Across Alabama, cranes dotted skylines and groundbreakings became routine. Hyundai, ArcelorMittal, Georgia-Pacific and GE Appliances announced billions in combined U.S. investments — each with Alabama firmly in the mix. From new data centers in Montgomery and Huntsville to multimillion-dollar health care facilities in Birmingham and massive port improvements in Mobile, capital poured into nearly every sector. Ports were deepened, campuses expanded and small towns welcomed global manufacturers setting up shop for the first time.
Not every headline was celebratory. Montgomery’s Jackson Hospital filed for bankruptcy protection, a reminder of the headwinds still facing parts of the health care sector. And a highly anticipated nuclear project in Gadsden stalled when its parent company declared bankruptcy. Yet the year’s overall picture remained one of strength: record exports, surging capital investment and a steady stream of corporate appointments that promise new leadership for the future.
SPACE COMMAND
After a back and forth that spanned years and presidential administrations, President Donald Trump announced in September that U.S. Space Command will relocate from Colorado Springs, Colorado, to Huntsville’s Redstone Arsenal. The command, among other things, will play a key role in creating Trump’s “Golden Dome,” a missile defense shield for the U.S. The move means the relocation of about 1,400 jobs over the next five years.
BUILDING, BUYING AND EXPANDING
In March, Hyundai Motor Corp. announced plans for a $21 billion investment in its U.S. operations. That includes upgrades and expansion at Hyundai Motor Manufacturing Alabama in Montgomery.
In October, a majority stake in Montgomery-based Joe Hudson’s Collision Center sold for $1.3 billion.
Birmingham-based Diversified Energy acquired Texas’ Maverick Natural Resources for $1.27 billion in March.
ArcelorMittal in February announced plans for a $1.2 billion expansion at its Calvert plant in Mobile County.
Georgia-Pacific announced in September it would invest $800 million to expand its Alabama River Cellulose mill. The mill is in Perdue Hill in Monroe County.
Owens Corning announced in September it would build a 250,000-square-foot shingle manufacturing plant in Prattville.
GE Appliances in August announced a $3 billion investment in its U.S. facilities, including its plant in Decatur. The facility increased production as a result of the investment.
Meta announced in September an additional $700 million investment in its Montgomery Data Center. That means the company has invested $1.5 billion in the facility.
Prattville in July broke ground on the $500 million Riverfell. The mixed-use development is along the Alabama River.
Diageo, a London-based beverage company, in January announced plans for a $412 million distribution plant in Montgomery.
A $366 million, multi-year project to deepen and widen the Port of Mobile was completed in October. A $131 million expansion of the port’s container facility was launched in October.
International Paper said in August it would invest $250 million in expanding its Riverdale mill in Selma.
A $156 million UAB Rehab Facility opened in downtown Birmingham in August.
Birmingham-based Robins & Morton broke ground in March on a $150 million tower expansion at Huntsville Hospital.
Alabama A&M University announced in January that it was building a new science building and student activities center, a combined $140 million project.
Core Scientific announced in February it would build a $135 million data center in the AUBix facility in Auburn.
Jasper Lumber Co. expected to complete a $135 million upgrade of its sawmill facility by the end of 2026.
Construction began in June on the Mobile Arena, on the site of the former Mobile Civic Center. It’s part of a $300 million development project in downtown Mobile.
In June, Kimberly-Clark announced a $130 million expansion of its Mobile facility. The project will add a new production line for hygiene products.
Southern Research opened a new, $98 million facility in downtown Birmingham in August.
Construction began in February on the $94 million Montgomery Intermodal Container Transfer Facility. The rail facility will expand the Port of Mobile to Montgomery.
Glaukos Corp., an ophthalmic pharmaceutical and medical technology company, announced in September an $80 million research and manufacturing campus in Huntsville.
Ground was broken in May on the $80 million Heman Drummond Center for Innovation in Jasper.
In November, U.S. Steel announced a $75 million investment in its Fairfield plant in Alabama.
Stainless pipe manufacturer Butting USA announced plans in July to build a $61 million plant in Loxley in Baldwin County. The facility will be the German company’s North American headquarters and its first facility in the U.S.
After a $60 million renovation, Mobile’s Gulf Distributing opened its new headquarters in the old Press-Register building in October.
The University of Alabama at Birmingham opened the Altec/Styslinger Genomic Medicine and Data Sciences Building in downtown Birmingham in October. Funding included $50 million from the state of Alabama.
The Decatur City Council in September approved a $43 million expansion of the Cook Museum of Natural Science. The museum will double in size.
In August, Mobile’s Spring Hill College broke ground on the $35 million Annette N. Shelby Health and Science Innovation Center.
Southern Ionics in September announced a $34 million expansion of its plant in Tuscaloosa. The company makes specialty chemicals for water treatment.
Shipbuilder Birdon invested more than $27 million to prepare for a nearly $1.2 billion contract for U.S. Coast Guard cutters. The company began construction on the first one in July.
Calhoun Community College broke ground in October on a $17 million student union building in Decatur.
South Korean auto supplier Samkwang in March announced plans for a manufacturing plant in Macon County.
Titomic, a company based in Australia, opened a facility in Huntsville in June.
Digital infrastructure provider DC Blox announced two more data centers in Alabama in December 2024, one in Huntsville and the other in Montgomery.
Japanese electronics firm JST announced plans in December 2024 to build a facility in Guntersville.
In March, plastic extrusion specialist Primo A/S, based in Denmark, announced plans to open its first U.S. facility in Mobile.
In April, Austal USA christened the USNS Billy Frank Jr., the first ship completed on its 3-year-old steel production line.
CHANGES AT THE TOP
Jodi Parnell was named president and CEO of O’Neal Steel at the end of 2024.
Rick Metzger, already the interim, was named CEO of USA Health Providence Hospital in December 2024.
Sid Trant, who had been serving as interim, was named chancellor of the University of Alabama System in February.
Jared Briskin was named CEO of Birmingham-based Hibbett in February.
Mark Rader was named president and CEO of Montgomery’s Hyundai Motor Manufacturing Alabama in May.
Peter Mohler became president of the University of Alabama in July following Stuart Bell’s resignation.
After serving as interim, Natalie Fox was named CEO of USA Health in October.
Raymond J. Harbert announced he was stepping down as CEO of Harbert Management Corp. on Jan. 1, 2026, handing the reins to Travis Pritchett.
CONTRACTS
Northrop Grumman was awarded a $481 million contract in January to update and improve the Integrated Air and Missile Defense Battle Command System’s software, with a major portion of the work being performed in Huntsville.
FabArc Steel Supply, in Oxford, was awarded a $100.7 million contract in March for an automotive project in New Carlisle, Indiana.
Huntsville-based Collins Aerospace, in March, received an $80 million U.S. Army contract to upgrade the avionics system of Black Hawk helicopters.
A FEW MORE NOTES
Alabama’s Department of Commerce announced in March exports of more than $26.8 billion in 2024. It was the second-highest tally ever for Alabama exports. Commerce also noted $7 billion in capital investment across 224 projects in 2024.
A planned $232 million nuclear reactor project in Gadsden was put on hold in December 2024 after Ultra Safe Nuclear Corp. filed for Chapter 11 bankruptcy.
Wind Creek Hospitality, based in Atmore, acquired the Birmingham Racecourse and Casino, long owned by the McGregor family, in April.
Montgomery’s Jackson Hospital and Clinic filed for Chapter 11 bankruptcy in February after defaulting on $60 million in debt. City and county officials have been working on a plan to save the hospital.
After being rebuffed by the Biden administration, Japan’s Nippon Steel completed a $15 billion acquisition of U.S. Steel, with a major facility in Fairfield near Birmingham, in June.
Philanthropist MacKenzie Scott in October announced a $38 million gift to Alabama State University.
In July, five years after the sinking of the floating wall in the main lock of Wilson Dam, the Tennessee Valley Authority began using a temporary fix to allow full traffic through the dam. The 10-year fix will be replaced by a permanent solution.
The move of iconic Alabama brand Conecuh Sausage from Evergreen to Andalusia included a $400,000 grant from the state of Alabama to Andalusia in January.
Amtrak in August launched the Amtrak Mardi Gras Service, connecting Mobile and New Orleans by rail for the first time since Hurricane Katrina hit the coast.
The University of Alabama in October named its College of Engineering in honor of Lee J. Styslinger Jr., following a $25 million gift commitment from his wife, Catherine Styslinger.
Alec Harvey is executive editor of Business Alabama, based in the Birmingham office.
