Low tax burden means outlook is good.
As 2015 winds down, small business owners in Alabama are taking stock of the year and looking ahead to next.
Here are three key takeaways from a new report on the state, the 2016 Alabama Economic Development Guide from Business Alabama.
Alabama remains competitive: With one of the lowest tax burdens in the nation, the Yellowhammer State offers a great framework for business investments. With incentivized tax credits for hiring and capital investments as well as development grants up for grabs, Alabama is set up for long-term business success. Small business owners can continue to look forward to this environment in 2016, including the State Small Business Credit Initiative program with $31.3 million administered to small businesses by the state.
Regions are specializing: Different industries are thriving in regional markets. The Tennessee Valley has seen explosive growth in high-tech and advanced manufacturing, while the Central Highlands is known for banking and insurance. And high-tech agriculture has found a home in the Capital Heartland.
Auto is back: Among other rebounding industries, auto has made a comeback in Alabama, and the Big Four auto companies in the state are ramping up production to meet high demand. A wide range of smaller businesses benefit from these giants. In 2014, 1 million cars and 1.5 million engines were manufactured in Alabama, making it fifth in the nation in car and light truck production. The industry makes up half the state’s exports, reaching $7.1 billion in revenue in 2014. Business leaders and government figures agree that more research and support is needed in 2016 to continue robust production in the South.
