{{RELATEDLINKS}} Disruptions caused by COVID-19 continue to reverberate across manufacturing and retail supply chains, now further exacerbated by instability concerns throughout Europe and the rest of the world from the war in Ukraine. Inflation and the efforts to curb it through interest rate increases are further dampening the anticipated “post COVID” exuberance of FDI into the U.S. from small and medium-sized companies.

From an economic development and site selection perspective, these last 12 months have been the year of the mega project, led primarily by the automotive industry’s shift from internal combustion engines to electric vehicles. Countless $1B+ battery or advanced manufacturing projects have landed and announced or are currently searching for sites to call home. It’s really amazing to see. To be competitive, states and local governments are enhancing their arsenals of incentive dollars as well as updating their programs to better capture changing trends in advanced manufacturing. They are also working desperately to uncover and develop new mega sites to ensure that these scarce locations are ready for prime time.

Unfortunately, the volume and allure of the big fish have led some jurisdictions to be less responsive (and less aggressive) with smaller projects or, in worst-case scenarios, they are neglecting their most important business sector of all — existing industry. Moreover, despite being flush with COVID-cash, some states have been slow to develop long-term strategies for workforce development or infrastructure investment, which will ultimately hinder their ability to provide good “economic soil conditions” for decades to come.

In reviewing this year’s rankings, it is no surprise that Georgia continues to be at the top of most of the categories, including Top State for Doing Business for the ninth consecutive year. Peach State governors, commissioners, local EDOs, and allies have been rowing in the same direction (in cadence) for quite some time. Eight of the states rounding out this year’s top nine positions have ranked in the top 10 for the last three years running. Note that Ohio has been on a steady climb in the rankings these last few cycles, and Michigan has rejoined the top 10 in several subcategories.

The states that embrace site-readiness initiatives and that really understand workforce training are consistently ranked in the top five in these respective categories. In light of the nationwide shortage of labor and the dearth of available industrial buildings and sites, jurisdictions whose programs are not as strong should take a lesson from these best practices.