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2021 Top States Commentary: Top Ranked States Hold Their Positions

Despite increasing competition between states because of rising wages and a lack of ready-to-go sites, the top ranked states have remained consistent year over year.

Q3 2021
On the surface, not much is surprising about this year’s Top States survey. All the usual suspects are there in the top 10. Only four states scored top 10 in all criteria: Georgia, Texas, Tennessee, and North Carolina. They have longstanding momentum regardless of the business cycle, the pandemic, or policy changes.

On the other hand, we are seeing more competition for two reasons, the first being national wage compression. Manufacturing and distribution wage rates are going up everywhere. Eighteen months ago, $13–$14 an hour starting pay has been replaced by $16–$17 even without a change in minimum wage laws. Supplemental unemployment insurance is part of that, but employers are telling us that these workers are also demanding more flexibility and work-life balance since they can’t enjoy the benefits of work-from-home. At the highest skill levels, we are also hearing employers say they are not finding big savings in what used to be lower-cost markets for engineers, programmers, and scientists.

Secondly, there are so few ready-to-go sites that second-tier markets are showing up well compared to the usual target markets if they have created a real pipeline of accessible and utility-served parcels.

TOP STATES FOR DOING BUSINESS 2021

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

Individual Categories

Overall Cost of Doing Business

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

Business Incentives Programs

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

Access to Capital & Project Funding

  1. 1. California
  2. 2. Texas
  3. 3. New York
  4. 4. Massachusetts
  5. 5. Georgia
  6. 6. North Carolina
  7. 7. Illinois
  8. 8. Florida
  9. 9T. Tennessee
  10. 9T. Arizona

Competitive Labor Environment

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

Workforce Development Programs

  1. 1. Georgia
  2. 2T. Virginia
  3. 2T. Louisiana
  4. 4. South Carolina
  5. 5. Alabama
  6. 6T. North Carolina
  7. 6T. Tennessee
  8. 8T. Arizona
  9. 8T. Ohio
  10. 10T. Texas
  11. 10T. Florida
  12. 10T. California

Energy Availability & Costs

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

Logistics & Infrastructure

  1. 1. Texas
  2. 2. Georgia
  3. 3T. Tennessee
  4. 3T. Indiana
  5. 5T. Virginia
  6. 5T. South Carolina
  7. 7. Ohio
  8. 8. California
  9. 9. North Carolina
  10. 10T. Kentucky
  11. 10T. Illinois

Site-Readiness Programs

  1. 1. Tennessee
  2. 2. Georgia
  3. 3. North Carolina
  4. 4T. South Carolina
  5. 4T. Ohio
  6. 6T. Virginia
  7. 6T. Indiana
  8. 8. Alabama
  9. 9T. Texas
  10. 9T. Arizona
  11. 9T. Kentucky

Available Real Estate

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

Cooperative & Responsive State Government

  1. 1. Georgia
  2. 2. Tennessee
  3. 3. Indiana
  4. 4. South Carolina
  5. 5. North Carolina
  6. 6T. Alabama
  7. 6T. Virginia
  8. 8. Mississippi
  9. 9. Arizona
  10. 10T. Texas
  11. 10T. Ohio

Corporate Tax Environment

  1. 1. Texas
  2. 2. Florida
  3. 3T. Nevada
  4. 3T. North Carolina
  5. 5. Tennessee
  6. 6. Ohio
  7. 7T. Indiana
  8. 7T. South Dakota
  9. 9. Georgia
  10. 10T. Utah
  11. 10T. Wyoming

Favorable Regulatory Environment

  1. 1. South Carolina
  2. 2. Texas
  3. 3T. Georgia
  4. 3T. Alabama
  5. 5. Indiana
  6. 6. Tennessee
  7. 7. Mississippi
  8. 8T. Arizona
  9. 8T. Nevada
  10. 10T. North Carolina
  11. 10T. Florida
  12. 10T. Utah

Speed of Permitting

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

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