Category

Ease of Doing Business

Domestic Manufacturing

Sustainability Initiatives

Balance of Trade / Global Contribution

STRENGTHS

✅ Permanent Fund Dividend (PFD): Provides stable income, supporting local consumer demand.

✅ World-Class Seafood: High-quality, globally demanded wild-caught seafood (value-added processing is a focus).

✅ Abundant Hydropower: Significant existing and potential renewable energy sources (hydro, wind, tidal) reduce reliance on fossil fuels in some areas.

✅ Strategic Geographic Location: Proximity to Asian markets and a key hub for Air Cargo (Ted Stevens Anchorage International Airport).

WEAKNESSES

❌ High Cost of Living/Business: Extremely high costs for transportation, energy, and labor due to remoteness and limited infrastructure.

❌ Limited Diversification: Over-reliance on the seafood, oil & gas, and mining sectors; lack of a robust, diversified manufacturing base.

❌ Infrastructure Gaps: High cost and fragmentation of energy and transport grids, making large-scale renewable projects difficult to connect.

❌ Dependence on Oil: State budget and overall trade balance are heavily dependent on volatile global oil prices and production volume.

OPPORTUNITIES

⬆️ Federal Infrastructure Funding: Huge influx of federal funding (IIJA, etc.) for broadband, ports, and energy, improving connectivity and lowering costs.

⬆️ Mariculture Development: Rapid growth of kelp and shellfish farming offers new, sustainable, high-value manufacturing and export products.

⬆️ Critical Minerals & LNG: Development of natural gas (Alaska LNG) as a lower-carbon fuel export and mining of critical minerals (e.g., cobalt, rare earths) for the global energy transition.

⬆️ Arctic Trade Route Development: Potential for increased shipping and trade activity as Arctic sea ice recedes.

THREATS

⬇️ Political/Regulatory Uncertainty: Volatility from changing state and federal regulations (e.g., new tariffs, minimum wage changes, resource permitting delays).

⬇️ Supply Chain Constraints: Federal requirements like "Buy America" (for federally funded projects) can slow projects and increase costs due to lack of local suppliers.

⬇️ Climate Change & Ocean Warming: Direct impact on core industries like fisheries (e.g., changing ocean conditions affecting salmon runs) and coastal infrastructure.

⬇️ Global Trade Tensions: US-China trade disputes and escalating tariffs threaten global demand, reducing oil commodity prices and potentially affecting seafood and mining exports.