Huntsville Business

Huntsville is frequently recognized by national publications for its economic growth and thriving industries. According to U.S. News & World Report in 2025, Huntsville was among the top 25 mid-sized cities to live in, with a job market that’s better than the national average. HGTV echoed the sentiment, naming the Rocket City to its “20 Best Mid-Sized Cities in the United States” 2025 list and calling it “a mover and shaker thanks to a highly educated workforce and relatively affordable housing.”

In early 2025, the Milken Institute ranked Huntsville No. 4 on its list of “Best Performing Cities;” the report measured cities’ effectiveness at promoting economic growth and access to services needed for higher quality of life. Also in 2025, the city was ranked among the top five U.S. metros for millennials to live and work in by CommercialCafe.

Manufacturing has long been a cornerstone of industry in the Greater Huntsville area. In fact, according to ASmartPlace, the largest sector in the Huntsville Workforce Region (16 counties) is manufacturing, which employs 108,842 individuals. Given its competitive labor costs and abundance of project funding, the City of Huntsville has welcomed a number of big names in the automotive, aerospace, and fabrication industries, among others, and has seen a remarkable amount of foreign investment over the past decade. For example, in 2025, Australian company Titomic Limited chose Huntsville for its new 59,000-square-foot facility to support advanced production capabilities.

Many of these companies are investing millions in expanding their operations, creating even more jobs in the area. In 2025, Eli Lilly announced that it would be investing $6 billion in a new manufacturing facility that will create 450 jobs. L3Harris Technologies unveiled its $20 million, 379,000-square-foot rocket motor plant in West Huntsville, while Lockheed Martin opened its $17 million, 17,000-square-foot Hypersonics System Integration Lab at its Huntsville campus. Also in 2025, giant defense contractor Northrop Grumman unveiled its Enhanced Production and Integration Center (EPIC), which features 175,500 square feet of production space in Madison. A year earlier, United Launch Alliance (ULA) cut the ribbon on a $300 million expansion to its rocket facility in nearby Decatur, creating an additional 200 jobs. The largest engine producer in North America, Toyota Alabama added more than 350 jobs in 2024 when it grew its Huntsville plant production capabilities with a $282 million investment.

In addition to manufacturing, other thriving sectors include healthcare and social assistance, retail trade, education, information technology, and logistics. Companies like Meta, Adtran, and Amazon have invested heavily in the region.

Two key factors in the success of the Greater Huntsville area are its strategic location and superior infrastructure. Located in northern Alabama, Huntsville is within a day’s drive of major markets such as Atlanta, Nashville, Memphis, and Birmingham. The city is well-served by a robust transportation network, including Interstates 565 and 65, rail connections, and the Port of Huntsville, which features an international airport and foreign trade zone. This logistical strength allows companies to efficiently ship products, access suppliers, and serve clients both regionally and globally. In neighboring Decatur, the Port of Decatur is one of the busiest ports on the Tennessee River with access to the Tennessee-Tombigbee Waterway.

Strong support for startups and small businesses is provided by a number of entities in the Greater Huntsville area. Huntsville’s business-friendly ecosystem is bolstered by the Huntsville/Madison County Chamber, which provides resources including networking events, economic insights, and licensing guidance. Local incubators such as The Catalyst Center for Business & Entrepreneurship, as well as nonprofits like Rocket City Innovator, provide coaching, collaboration, funding, and more to help startups and small businesses launch and scale. Additionally, national venture capital firm gener8tor powers several accelerators in the area including gBETA Huntsville and HudsonAlpha AgTech Accelerator.

Beyond its reputation for innovation and economic opportunity, Huntsville’s vibrant arts and culture play an essential role in shaping the business landscape. In 2015, Huntsville/Madison County participated in Arts and Economic Prosperity 5, an economic impact study that showed nonprofit arts and culture organizations contributed $89.9 million to the economy that year. The arts have been staunchly supported by Huntsville Mayor Tommy Battle throughout his terms in office, leading to commissioned large-scale public art installations, the creation of the Huntsville Music Board and Huntsville Music Office, and more – attracting both new visitors to the area and new businesses.

Benefiting from its burgeoning arts scene and nationally acclaimed attractions, tourism has also played a large part in the area’s success. The tourism sector comprises 23,091 jobs in Madison County, which brought in more than $2.4 billion in revenue in 2024. This is great news for residents as well as those employed by the tourism industry – as a result of travel expenditures, every household in Huntsville/Madison County saved more than $1,300 in taxes that year. To better accommodate visitors, such as the 2.8 million guests who stayed overnight in hotels in 2024, Huntsville is experiencing a surge in hotel development, with half a dozen projects under construction and several more in final planning.

Forecasts predict that Huntsville’s future economic growth will continue to outpace that of the United States. Across the Greater Huntsville area, business leaders in conjunction with academia, community leaders, and government officials remain dedicated to creating one of the most attractive locations in the country for work and play.