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Alabama wins Area Development’s Silver Shovel Award for economic development

Record 2025 investments in aerospace, defense, pharmaceuticals and automotive projects brought $14.6 billion and 9,388 new jobs.

Alabama Gov. Kay Ivey accepts the 2026 Silver Shovel Award. OFFICE OF THE GOVERNOR OF ALABAMA

Business publication Area Development recently named Alabama one of its 2026 State Shovel Award winners, awarding the state a Silver Shovel Award for economic growth across multiple industries.

“Alabama’s Silver Shovel year is anchored by the defense and aerospace sectors, with a project portfolio that reflects the state’s long-standing strengths while pointing toward new industrial frontiers,” the publication stated. “U.S. Space Command brings 1,312 defense jobs to Huntsville at no reported capital cost—a federal presence that reinforces the region’s role as a national hub for space and defense operations. Eli Lilly’s $6 billion pharmaceutical investment in Huntsville—a manufacturing project of the year—adds 450 jobs and signals that Alabama’s life sciences ambitions are serious.”

Alabama Governor Kay Ivey celebrated the award and touted the economic policies pursued by her administration in a written statement Tuesday.

“Alabama saw a record-breaking amount of industry investment in 2025 as more companies recognize we have the space, prime locations, infrastructure and skilled workforce that will make them successful,” Ivey said. “That investment—and this latest Silver Shovel Award—is further proof that the economic development policies developed in Montgomery and the work by local community leaders are creating quality jobs and opportunities for our citizens.”

In addition to defense, aerospace and pharmaceuticals, Area Development noted the automotive industry’s continued investment in the state.

“Automotive investment continues to flow,” the publication stated. “CPT America brings $163 million and 187 jobs in automotive manufacturing to Tuskegee, while Samkwang adds 114 positions in the same city. ArcelorMittal Calvert invests $1.2 billion and 205 jobs in raw materials and mining in Calvert, and Alabama River Cellulose—a Georgia Pacific company—commits $800 million to raw materials in Monroeville.”

Alabama secured a record $14.6 billion in capital investment in 2025, accompanied by the creation of 9,388 new jobs across 234 projects, according to the Alabama Department of Commerce’s annual New and Expanding Industry Announcement report.

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“The Alabama Department of Commerce’s paramount goals are to attract quality jobs for Alabamians and better the state’s communities through long-term investments,” Commerce Secretary Ellen McNair said. “To be recognized by Area Development for the results of that work is always appreciated.”

In addition to this year’s Silver Shovel Award, Area Development has recognized Alabama with Gold Shovel Awards in 2006, 2013, 2019 and 2021, and Silver Shovel Awards from 2007 to 2012, 2014 to 2018, 2022 and 2024.

Tennessee and South Carolina also won Silver Shovel Awards in the 5 million to 8 million population range this year, while Arizona won the Gold Shovel Award in the same category. Area Development’s premier award, the 2026 Platinum Shovel, went to North Carolina.

Alex Jobin is a reporter. You can reach him at [email protected].

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