2021 Top States Commentary: A Look Behind the Rankings

{{RELATEDLINKS}} There was some slight movement at the top of the Top States for Doing Business survey, and, yes, the Southeast fared well once again. A deep dive into the data, however, will show some interesting movement in the rankings. Was this caused by one year’s worth of polling, desktop site selection during COVID, a few bad projects? Alternatively, does this data reveal trends worth noting?

Let’s take a closer look.

Utah drops from #7 to #11 in the Competitive Labor Market. This is a location our clients with office and/or manufacturing needs are asking about, and the state’s success is partially attributable to the cost increases in Denver and Phoenix. We’ll have to wait until next year to see if this is a one-year drop or if all those wins substantially tightened the labor market. One truly has to visit Salt Lake to understand the possibilities, and widespread travel restrictions could account for Utah’s lower score.
In back-to-back years, California doesn’t make the list for logistics. My rationale for this is California is a great place from which to serve the West Coast, but if at all possible (and it’s usually not), companies avoid the Republic.
North Carolina (#5) and South Carolina (#4) have new secretaries of Commerce leading their teams. Can they keep up the momentum?
Taxes matter. Florida (#2 for Corporate Tax Environment) sees a large influx of financial positions bolstering the wages and disposable income in beachfront communities. This has been happening for years, but in 2020 this trend accelerated — possibly aided by reduced COVID restrictions.
Arizona is top 10 in every category except Corporate Tax Environment, Business Incentives, and Logistics and Infrastructure. These are extremely important categories depending on the project, but with a strong labor market, workforce training, land availability, and energy costs, expect to see more projects here. The state is heavily reliant on Phoenix, so changes in the nearby markets will affect its rankings.

TOP STATES FOR DOING BUSINESS 2021

1. Georgia
2. Texas
3. Tennessee
4. South Carolina
5. North Carolina
6. Alabama
7. Indiana
8. Virginia
9. Ohio
10. Florida
11. Arizona
12. Mississippi
13. Louisiana
14. California
15. Nevada
16. Kentucky
17. Utah
18. Oklahoma
19. New York
20. Kansas

Individual Categories

Overall Cost of Doing Business

1. Georgia
2T. North Carolina
2T. Alabama
4T. Texas
4T. Tennessee
4T. South Carolina
7. Mississippi
8. Indiana
9T. Florida
9T. Arizona

Business Incentives Programs

1. South Carolina
2. Georgia
3. Alabama
4. Tennessee
5T. Indiana
5T. Mississippi
7T. North Carolina
7T. Virginia
7T. Louisiana
10. Texas

Access to Capital & Project Funding

1. California
2. Texas
3. New York
4. Massachusetts
5. Georgia
6. North Carolina
7. Illinois
8. Florida
9T. Tennessee
9T. Arizona

Competitive Labor Environment

1T. Georgia
1T. Texas
3. North Carolina
4. Florida
5T. Tennessee
5T. Virginia
5T. Arizona
8. Indiana
9T. South Carolina
9T. Alabama

Workforce Development Programs

1. Georgia
2T. Virginia
2T. Louisiana
4. South Carolina
5. Alabama
6T. North Carolina
6T. Tennessee
8T. Arizona
8T. Ohio
10T. Texas
10T. Florida
10T. California

Energy Availability & Costs

1. Tennessee
2. Georgia
3. Texas
4. North Carolina
5. Washington
6T. South Carolina
6T. Kentucky
8T. Arizona
8T. Alabama
10. Oklahoma

Logistics & Infrastructure

1. Texas
2. Georgia
3T. Tennessee
3T. Indiana
5T. Virginia
5T. South Carolina
7. Ohio
8. California
9. North Carolina
10T. Kentucky
10T. Illinois

Available Real Estate

1T. Texas
1T. Georgia
3. North Carolina
4T. Ohio
4T. South Carolina
6. Tennessee
7T. Arizona
7T. Alabama
9. Indiana
10. Florida

Cooperative & Responsive State Government

1. Georgia
2. Tennessee
3. Indiana
4. South Carolina
5. North Carolina
6T. Alabama
6T. Virginia
8. Mississippi
9. Arizona
10T. Texas
10T. Ohio

Corporate Tax Environment

1. Texas
2. Florida
3T. Nevada
3T. North Carolina
5. Tennessee
6. Ohio
7T. Indiana
7T. South Dakota
9. Georgia
10T. Utah
10T. Wyoming

Favorable Regulatory Environment

1. South Carolina
2. Texas
3T. Georgia
3T. Alabama
5. Indiana
6. Tennessee
7. Mississippi
8T. Arizona
8T. Nevada
10T. North Carolina
10T. Florida
10T. Utah

Speed of Permitting

1. Alabama
2. South Carolina
3. Georgia
4. Mississippi
5. Texas
6. Tennessee
7. Virginia
8. North Carolina
9T. Arizona
9T. Louisiana
9T. Indiana

Categories: