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Area Development - Site Selection, Facility Planning and Workforce Development

2019 Top States for Doing Business Commentary: Long-Term Perspective Shows Southern States as “Go-To” Places for Business

It can be said that shared reasoning garnered through client collaboration, as well as recent experience gained through working on location projects with the various states, validates the results of the most recent Top States survey.

Q3 2019
As we are coming to an end of this decade, we realize that location selection consulting is approaching 100 years as an active professional service. Over that time period, there have been maybe four or five generations of advisors who have come into this business — bringing fresh ideas, differing approaches, and new perspectives to the clients they serve. Now that the most recent feedback has been received from these consultants, out of curiosity, one must ask, how have things changed over time and has the importance of those factors suggesting “Best States” varied with the times?

Most importantly, we should all recognize that although survey results from a single year may provide some valuable insights into the latest thinking of location advisers, the thing of most value is how the findings have changed over a longer period of time. Although these survey submissions are the opinions of the advisers, one cannot help but think the responses are a direct result of shared reasoning garnered through client collaboration (therefore influenced by corporate opinions), as well as recent experience gained through working deals with the various states. In sum, there are no surprises. The Southern States, perhaps from as far back as the 1950s, continue as the “Go-To” places for business.

Taking a long-term perspective, six of this year’s top-10 states — Georgia, Tennessee, South Carolina, Alabama, North Carolina, and Texas — have been in the top 10 for all of the last 10 years; three states — Mississippi, Louisiana, and Indiana — have been in top 10 for nine of 10 years; and Ohio and Florida were included in four of 10 years. Not surprisingly, states in the Northeast, Rustbelt States, and others with onerous worker regulations and high operating costs remained in the lower rankings. However, several states with favorable business climates (low taxes, low operating costs, appropriate labor supply) received low scores simply because they are not “top-of mind” locations.

We believe the survey results capture what we have been experiencing — including client feedback over the past few years. Those factors being weighed are the paramount considerations and have not varied much over time. Additionally, these states rate very well in terms of attractiveness to relocating employees, quality of life, travel convenience, and other considerations not mentioned in this survey.

TOP STATES FOR DOING BUSINESS 2019

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

Individual Categories

Overall Cost of Doing Business

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

Corporate Tax Environment

  1. 1. Texas
  2. 2. North Carolina
  3. 3. Georgia
  4. 3T. Florida
  5. 5. Tennessee
  6. 6. Alabama
  7. 7. Indiana
  8. 8. South Dakota
  9. 8T. Nevada
  10. 10. Mississippi

Business Incentives Programs

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

Access to Capital & Project Funding

  1. 1. California
  2. 2. New York
  3. 3. Georgia
  4. 4. Texas
  5. 5. Tennessee
  6. 5T. Ohio
  7. 5T. North Carolina
  8. 5T. Massachusetts
  9. 9. South Carolina
  10. 9T. Virginia
  11. 9T. Florida

Competitive Labor Environment

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

Leading Workforce Development Programs

  1. 1. Georgia
  2. 2. South Carolina
  3. 3. Louisiana
  4. 4. Alabama
  5. 5. North Carolina
  6. 6. Tennessee
  7. 7. Virginia
  8. 8. Ohio
  9. 9. Kentucky
  10. 10. Oklahoma

Shovel-Ready Sites Program

  1. 1. Tennessee
  2. 2. Georgia
  3. 3. South Carolina
  4. 4. North Carolina
  5. 5. Alabama
  6. 6. Ohio
  7. 7. Texas
  8. 7T. Kentucky
  9. 9. Virginia
  10. 9T. Mississippi
  11. 9T. Missouri
  12. 9T. Iowa

Cooperative & Responsive State Government

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

Favorable General Regulatory Environment

  1. 1. Alabama
  2. 2. Texas
  3. 3. Georgia
  4. 4. South Carolina
  5. 5. Tennessee
  6. 6. Mississippi
  7. 7. Arkansas
  8. 8. North Carolina
  9. 8T. Kentucky
  10. 8T. Louisiana
  11. 8T. Iowa

Favorable Utility Rates

  1. 1. Tennessee
  2. 2. Georgia
  3. 3. South Carolina
  4. 3T.
  5. 5. North Carolina
  6. 6. Kentucky
  7. 6T. Louisiana
  8. 8. Alabama
  9. 8T. Idaho
  10. 8T. Mississippi
  11. 8T. Texas

Most Improved Economic Development Policies

  1. 1. Ohio
  2. 2. Georgia
  3. 2T. Alabama
  4. 4. North Carolina
  5. 4T. Arizona
  6. 6. Tennessee
  7. 6T. Virginia
  8. 6T. Kentucky
  9. 6T. Indiana
  10. 10. Michigan

Speed of Permitting

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

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