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Alabama is unofficially nicknamed the Yellowhammer State, which is also the name of the state bird. Alabama is also known as the "Heart of Dixie". The state tree is the Longleaf Pine, the state flower is the Camellia. The capital of Alabama is Montgomery, and the largest city by population is Birmingham. The largest city by total land area is Huntsville. The oldest city is Mobile.

Alabama's industrial outputs include iron and steel products (including cast-iron and steel pipe); paper, lumber, and wood products; mining (mostly coal); plastic products; cars and trucks; and apparel. Also, Alabama produces aerospace and electronic products, mostly in the Huntsville area, which is home of the NASA George C. Marshall Space Flight Center and the US Army Aviation and Missile Command, headquartered at Redstone Arsenal.

Alabama is also home to the largest industrial growth corridor in the nation, including the surrounding states of Tennessee, Mississippi, Florida, and Georgia. Most of this growth is due to Alabama's rapidly expanding automotive manufacturing industry. In Alabama alone since 1993, it has generated more than 67,800 new jobs. Alabama currently ranks 4th in the nation in automobile output.

In the 1970s and 1980s, Birmingham's economy was transformed by investments in bio-technology and medical research at the University of Alabama at Birmingham (UAB) and its adjacent hospital. The UAB Hospital is a Level I trauma center providing health care and breakthrough medical research. UAB is now the area's largest employer and the largest in Alabama with a workforce of about 20,000. Health care services provider HealthSouth is also headquartered in the city.

Birmingham is also a leading banking center, serving as home to two major banks: Regions Financial Corporation and Compass Bancshares. SouthTrust, another large bank headquartered in Birmingham, was acquired by Wachovia in 2004. The city still has major operations as one of the regional headquarters of Wachovia. In November 2006, Regions Financial merged with AmSouth Bancorporation, which was also headquartered in Birmingham. They formed the 8th Largest U. S. Bank (by total assets). Nearly a dozen smaller banks are also headquartered in the Magic City, such as Superior Bank and New South Federal Savings Bank.

Telecommunications provider AT&T, formerly BellSouth, has a major presence with several large offices in the metropolitan area. Major insurance providers: Protective Life, Infinity Property & Casualty and ProAssurance among others, are headquartered in Birmingham and employ a large number of people in Greater Birmingham. The city is also a powerhouse of construction and engineering companies, including BE&K and B. L. Harbert International which routinely are included in the Engineering News-Record lists of top design and international construction firms.