Subscribe
Close
  • Free for qualified executives and consultants to industry

  • Receive quarterly issues of Area Development Magazine and special market report and directory issues

Renew

2022 Top States Commentary: Responsiveness to Projects Big — and Small — Lands a Core Group of States on Top

States that embrace site-readiness initiatives and understand workforce training are among those considered top states for doing business.

Q3 2022
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.

TOP STATES FOR DOING BUSINESS 2022

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

Individual Categories

Workforce Development Programs

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

Overall Cost of Doing Business

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

Site-Readiness Programs

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

Cooperative & Responsive State Government

  1. 1. Georgia
  2. 2T. North Carolina
  3. 2T. Tennessee
  4. 4. South Carolina
  5. 5. Ohio
  6. 6. Virginia
  7. 7. Louisiana
  8. 8T. Alabama
  9. 8T. Arizona
  10. 8T. Arkansas
  11. 8T. Michigan
  12. 8T. Mississippi
  13. 8T. Texas

Favorable Regulatory Environment

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

Corporate Tax Structure

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

Business Incentives Programs

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

Competitive Labor Environment

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

Logistics & Infrastructure

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

Access to Capital & Funding

  1. 1. California
  2. 2. Texas
  3. 3. New York
  4. 4T. Massachusetts
  5. 4T. Virginia
  6. 6. Illinois
  7. 7. Georgia
  8. 8T. Michigan
  9. 8T. North Carolina
  10. 10T. Colorado
  11. 10T. Tennessee

Available Real Estate

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

Energy Availability & Costs

  1. 1T. Georgia
  2. 1T. Tennessee
  3. 3T. Alabama
  4. 3T. North Carolina
  5. 5. Mississippi
  6. 6T. Louisiana
  7. 6T. South Carolina
  8. 8T. Iowa
  9. 8T. New York
  10. 8T. Ohio
  11. 8T. Oklahoma
  12. 8T. Texas
  13. 8T.

Speed of Project Permitting

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

Exclusive Research