Top States for Doing Business 2013 Consultant Commentary: Business-Friendly Initiatives Attract Companies

A growing emphasis on work force development programs to strengthen the labor pool will only further solidify the Southern States’ standings as great places to do business.

Ann Petersen, Managing Director, Business Incentives Practice, Cushman & Wakefield

Q3 / Summer 2013

As the Top States for Doing Business survey indicates, companies continue to be attracted to states with the ideal combination of shovel-ready sites, infrastructure, labor availability, and competitive operating costs. While those key preferences are not new, the survey underscores an overarching new trend of increasing demand for conducting business in the South and Southeast. In general, we are seeing a shift in corporate relocations toward these southern areas, indicating that business-friendly initiatives in these states are having a visible effect on attracting companies. Texas has been actively recruiting companies in other markets through a national advertising campaign, which may have contributed to its high placement in the survey rankings. Beyond Texas, such states as Georgia, North and South Carolina, and Tennessee have been aggressive in providing the ideal characteristics and demonstrating their responsiveness to business needs — and their success also is reflected in the survey results. North Carolina has created numerous successful corporate relationships in recent years.

Of course, a challenge for all state economic development teams is the local political dynamic. States ranked highly for doing business today may increase or lose their appeal as the political winds blow. It is important for companies and their consultants to stay abreast of state and local trends that may affect incentive programs, taxes, zoning, and other site selection considerations. Many of the top-ranked states, and the municipalities within them, have proven their willingness and ability to create successful partnerships with companies. A growing emphasis on work force development, training, and education programs to strengthen the labor pool will only further solidify these states’ standings as great places to do business.