Why Food Manufacturers Are Looking to Huntsville

Huntsville has secured the No. 3 spot in the nation for food manufacturing in the newly released 2025 Best Places for Food Manufacturing Insights Report by Global Location Strategies (GLS), a top global site selection and location strategy firm. The report ranked 387 metro areas across the U.S., combining more than 100 factors related to quality and cost.

Huntsville stands out for its well-rounded strengths: a skilled workforce, robust infrastructure, supportive regulatory environment, and a strong industry ecosystem. In addition to these “quality” factors, GLS evaluated cost elements such as utilities, lease rates, and effective tax rates. The analysis revealed that labor costs remain the largest cost driver for food manufacturing companies, followed by utilities, leases, and taxes.

“Huntsville’s ranking is a clear sign of its readiness to support the future of food manufacturing,” said Didi Caldwell, President and CEO of GLS. “We’re seeing companies prioritize communities that offer not only affordability, but also the talent and infrastructure to support long-term growth.”

The report arrives as the U.S. food manufacturing sector continues to rebound and expand. In 2024, the industry recorded 90 new projects nationwide, representing $15.3 billion in capital investment and 23,000 new jobs. Notably, the average project created 149 jobs and brought in nearly $100 million in investment. Specialty and fruit/vegetable food manufacturing led the way in job creation.

Regionally, the South Atlantic, which includes Alabama, ranked as the No. 2 best-performing region overall, boosted by strong foreign direct investment and a concentration of high-ranking metro areas. Huntsville, specifically, was ranked just behind Warner Robins, GA (No. 1) and Savannah, GA (No. 2), and ahead of Winston-Salem, NC (No. 4) and Clarksville, TN-KY (No. 5).

Huntsville’s position in the top five highlights its growing momentum as a competitive destination not only for aerospace and defense, but increasingly for advanced manufacturing and food production. As site selectors and manufacturers seek out regions that balance cost control with quality talent and infrastructure, Huntsville continues to make its mark as a city poised for long-term industrial growth.