Alaska Coverage Area
ArcBest® provides door-to-door service to and from the state of Alaska with a full suite of transportation and logistics solutions. To find out more, call 800-610-5544.
Facts about Alaska
- Population — 738,432 in 2015
- Unemployment rate — 6.7 percent in 2015
- Income tax rate — Up to 7.5 percent, based on income tax filing
Business in Alaska
The 49th state of the union is known for scenic views that draw tourists from around the world, but it’s also a state rich with business potential. Given the state’s expansive geography, vast public land ownership and natural resource endowment, it provides lucrative opportunities for industries such as oil, commercial fishing and agriculture.
Taxes and Economy
Alaska has a stable, growing economy and provides an affordable tax base to attract businesses and residents alike. The state is one of only five with no state sales tax and one of only seven that don’t levy an individual income tax on its residents, making Alaska one of the lowest-taxed states in the country.
Alaska also has experienced lower energy prices than any other state, which is beneficial to the transportation industry and is a cost savings for most households across the state. This, along with a low cost of living and a low poverty rate, make Alaska an ideal place to do business.
Alaska is largely fueled by three economic sectors: energy, agriculture and tourism. The state is home to major oil and natural gas reserves and ranks second in crude oil production, according to the Energy Information Administration. Revenue from oil and natural gas accounts for nearly 85 percent of Alaska’s budget. Mining provides revenue from other resources including gold, zinc, silver, coal, stone, and sand and gravel.
Agriculture, which includes fishing — primarily commercial salmon, halibut, cod and crab harvesting — farming and timber sales account for a large portion of the state’s economy. Greenhouse and nursery crops are the state’s largest agriculture commodities, while other products such as livestock, eggs, hay, dairy products, potatoes and barley are also profitable. Tourism generates nearly $4 billion from more than 1 million visitors annually.
Infrastructure in Alaska
With a more limited highway system than other states, getting around Alaska can be a unique experience. The state’s central road system covers only a small portion of the state and links the heavily populated areas to the Alaska Highway, which connects the state to Canada. Because of this, Alaskans rely on many other methods to travel and conduct business.
Airports and Waterways
Certain areas, such as the state’s capital in Juneau, the city of Ketchikan and other communities along the southeastern portion of the state, are accessible by air or water only. Many larger areas of the state, including interior and northern Alaska, are only accessible by air, but can be supplied by summer sea shipments. Anchorage is home to the state’s largest airport, Ted Stevens Anchorage International Airport, but many communities within the state have small air taxi services.
Railways and Other Methods
Railways also play a vital role in the state’s transportation needs, allowing intermodal freight to be moved throughout the state, and are a popular method of tourist travel. Other unconventional methods such as dogsled, ATVs and snowmobiles are also considered reliable forms of transportation.