Alabama's growing role in the national defense industry and ability to draw multinational corporations have earned the Yellowhammer State a 2026 Silver Shovel Award from the business publication Area Development.

According to Gov. Kay Ivey, the awards are presented each year to states that have achieved "noteworthy success" in job creation and economic impact, with winners being based on the "number of high value-added jobs per capita, the amount of investment, the number of new facilities and the industry diversity of the projects."

"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 in an announcement on Tuesday. "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."

Area Development explained its selection of Alabama for the Silver Shovel, citing projected job growth at U.S. Space Command in Huntsville and Eli Lilly's $6 billion commitment to build a facility in North Alabama as primary factors that earned Alabama the award. Both helped drive Alabama’s all-time-high investments in 2025, $14.6 billion and 9,388 new jobs across 234 projects.

"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,” the publication wrote. “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."

RELATED: Ivey touts Eli Lilly's $6 billion planned operation, U.S. Space Command's imminent relocation at Huntsville/Madison County Chamber of Commerce event

Alabama Commerce Secretary Ellen McNair expressed gratitude to Area Development for recognizing the state.

“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. To be recognized by Area Development for the results of that work is always appreciated," added McNair.

Area Development honored Alabama with Gold Shovel Awards in 2006, 2013, 2019 and 2021, and Silver Shovel Awards for 2007–2012, 2014–2018, 2022 and 2024.

To connect with the author of this story or to comment, email [email protected]

Don't miss out! Subscribe to our newsletter and get our top stories every day or become a member to gain access to exclusive content.