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Area Development - Site Selection, Facility Planning and Workforce Development

Texas is Named the Top State for Doing Business for the Second Year in a Row by Location Consultants

Everyone knows it's tough to topple Texas - the Lone Star State ranked first last year in this survey and, with more than 200 mentions, is again the Top State for Doing Business. Texas has a diverse economy, skilled work force, no corporate or personal income taxes, and a state government that is committed to tort reform and economic development.

Fall 2012
Top States for Doing Business
OVERALL RANKINGS
2012

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

2011

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

2010

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

BUSINESS ENVIRONMENT
overall business environment

1.  Texas
2.  South Carolina
3.  Alabama
4.  Louisiana
5.  North Carolina

NEXT BEST
Indiana, Mississippi,
Georgia, Tennessee, Oklahoma

COST OF DOING BUSINESS

1.  Texas
2.  Alabama
3.  South Carolina
4.  Louisiana
5T. Indiana
     Mississippi
     North Carolina

NEXT BEST
Tennessee, Arkansas, Georgia, Florida, Oklahoma, Virginia

CORPORATE TAX ENVIRONMENT

1.  Texas
2.  Nevada
3T. Florida
     South Dakota
4.  Alabama
5T. South Carolina
     Virginia

NEXT BEST
Indiana, Wyoming

INCENTIVES PROGRAMS

1.  Texas
2.  Louisiana
3.  South Carolina
4T. Alabama
     Georgia
5.  Oklahoma

NEXT BEST
Indiana, Florida, Mississippi, North Carolina, Ohio, Tennessee

CORPORATE STATE GOVERNMENT

1.  Louisiana
2.  South Carolina
3.  Alabama
4.  Texas
5.  Indiana

NEXT BEST
North Carolina, Mississippi, Tennessee, Georgia, Oklahoma, Arizona

SPEED OF PERMITTING

1.  Texas
2T. Alabama
     Mississippi      South Carolina
3T. Georgia
     Louisiana

ACCESS TO CAPITAL & PROJECT FUNDING

1.  Texas
2.  California
3.  North Carolina
4.  Massachusetts
5T. New York
     Ohio

LABOR CLIMATE
Overall labor Climate

1.  Georgia
2T. North Carolina
     South Carolina
3.  Alabama
4.  Texas
5.  Louisiana

NEXT BEST
Michigan, Mississippi, Florida, Oklahoma, California, Indiana, Arizona

Availability of Skilled Labor

1.  Michigan
2.  Texas
3T. California
     North Carolina
4.  Ohio
5.  Georgia

NEXT BEST
New York, Massachusetts, Indiana, Virginia, Arizona, Illinois, New Jersey

Competitive Labor Costs

1.  Alabama
2.  South Carolina
3.  Mississippi
4.  Georgia
5.  North Carolina

NEXT BEST
Texas, Arkansas, Florida, Tennessee, Kentucky

Leading Work Force Development Programs

1.  Georgia
2.  South Carolina
3.  Louisiana
4T. Alabama
     North Carolina
5.  Oklahoma

NEXT BEST
Florida

INFRASTRUCURE & GLOBAL ACCESS
OVERALL INFRASTRUCURE & GLOBAL ACCESS

1.  Tennessee
2.  Georgia
3.  South Carolina
4T. Indiana
     Texas
5.  Illinois

NEXT BEST
North Carolina, Ohio, Alabama, Kentucky, California

Rail & Highway Accessibility

1T.  Illinois
     Indiana
2T. Georgia
     Ohio
     Texas
3.  New Jersey
4T. California
     Missouri
     Tennessee

Certified Sites or Shovel-Ready Programs

1.  South Carolina
2.  North Carolina
3.  Tennessee
4.  Alabama
5.  Indiana

NEXT BEST
Georgia

Competitive Utility Rates

1.  South Carolina
2T. Alabama
     Mississippi
     Tennessee
3.  Georgia
4T. North Carolina
     Oregon
5T. Kentucky
     Washington

NEXT BEST
Utah

Distribution/
Logistics Hub Access

1. Tennessee
2. Illinois
3T. Georgia
     Texas
4T. California
     Indiana
5.  Ohio
     Washington

NEXT BEST
Kentucky, Oklahoma, Pennsylvania, Virginia

LEADING in the ECONOMIC RECOVERY

1.  Texas
2.  Louisiana
3T. Indiana
     North Carolina
4T. Georgia
     Michigan
5T. Florida
     Ohio
     Oklahoma
     South Carolina
     Virginia

NEXT BEST
California, Tennessee


CONSULTANTS COMMENTARY
Winning States Offer Low Taxes, Generous Incentives, and Fewer Regulations
Eric Stavriotis, Senior Vice President, Strategic Consulting, Jones Lang LaSalle
States With Deep Pools of Skilled Workers Come Out on Top
Scott Redabaugh, Managing Director, Jones Lang LaSalle
Survey of Location Consultants Fails to Capture Progress Made by Many States
Dan Levine, Pricipal, MetroCompare LLC
Low Costs, Favorable Business Climates, and Right-to-Work Environments Propel Top States
Kathy Mussio, Managing Partner, Atlas Insight
More than 222,000 new private-sector jobs were added over the last year, reflecting two years of solid job growth.

Consultant voting also placed Texas first for its overall business environment, including its cost of doing business, corporate tax environment, incentives programs, speed of permitting, and access to capital and project funding. Its top ranking for incentives programs is a tribute to its Texas Enterprise Fund (TEF), a "deal-closing" fund that helps secure big job-creating projects for which locations in other states are also competing. This program has invested almost $500 million to bring new projects to Texas, which represent about 63,000 jobs and more than $20 million in capital investment. Recently TEF awarded $1.9 million to HID Global Corporation, an identity protection firm, to build a new manufacturing facility and distribution center in Austin.

There is also the Texas Emerging Technology Fund (TETF), which has invested about $200 million to fund nearly 150 early-stage companies that represent emerging industries such as alternative energy, IT, and electronics. For example, the TETF recently awarded $250,000 to Rebellion Photonics to manufacture an innovative leak-detection device for the chemical/petrochemical industries and will provide up to $2 million to Vapogenix to develop non-opioid analgesics for pain management during minor surgical procedures.

"Texas continues to compete for - and win - new expansion projects and relocations from some of the most notable names in the most notable industries in the world," says Governor Rick Perry. "These include Caterpillar, the world's largest producer of construction and mining equipment; Toyota, which has greatly increased its presence in San Antonio; and Samsung, which has invested billions in expanding its semiconductor facility in Austin." These and other key industries such as advanced manufacturing and technology, aerospace and defense, biotechnology and life sciences, information and computer technology, petroleum refining, and energy continue to attract strong foreign direct investment - which is why Governor Perry received fDi magazine's inaugural 2012 Governor's Award. The award is given to the governor most successful in attracting new business investments to his or her state.

"I am proud of our state's accomplishments and honored to receive this award," says Governor Perry. "I will remain committed to upholding principles, like low taxes, restrained spending, reasonable spending, and a fair legal system."

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