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. Georgia
- 2. Tennessee
- 3. South Carolina
- 4. Texas
- 5. North Carolina
- 6. Alabama
- 7. Virginia
- 8. Ohio
- 9. Indiana
- 10. Mississippi
- 11. Florida
- 12. Louisiana
- 13. Arizona
- 14. Michigan
- 15. New York
- 16T. California
- 16T. Illinois
- 18. Kentucky
- 19T. Oklahoma
- 19T. Utah
Individual Categories
Workforce Development Programs
- 1. Georgia
- 2. Virginia
- 3. South Carolina
- 4T. Alabama
- 4T. Louisiana
- 6. Tennessee
- 7. North Carolina
- 8T. Arizona
- 8T. Michigan
- 8T. Texas
Overall Cost of Doing Business
- 1. Georgia
- 2. Tennessee
- 3. South Carolina
- 4. Alabama
- 5. North Carolina
- 6. Texas
- 7T. Indiana
- 7T. Mississippi
- 9T. Arizona
- 9T. Florida
- 9T. Ohio
Site-Readiness Programs
- 1. Tennessee
- 2. Georgia
- 3. South Carolina
- 4T. North Carolina
- 4T. Ohio
- 6. Virginia
- 7T. Indiana
- 7T. Texas
- 9. New York
- 10. Alabama
Cooperative & Responsive State Government
- 1. Georgia
- 2T. North Carolina
- 2T. Tennessee
- 4. South Carolina
- 5. Ohio
- 6. Virginia
- 7. Louisiana
- 8T. Alabama
- 8T. Arizona
- 8T. Arkansas
- 8T. Michigan
- 8T. Mississippi
- 8T. Texas
Favorable Regulatory Environment
- 1. South Carolina
- 2. Georgia
- 3T. Alabama
- 3T. Tennessee
- 5. North Carolina
- 6. Indiana
- 7. Texas
- 8. Florida
- 9T. Arizona
- 9T. Virginia
- 10T. Louisiana
- 10T. Mississippi
Corporate Tax Structure
- 1. Texas
- 2. Tennessee
- 3. Florida
- 4. North Carolina
- 5. Nevada
- 6T. Georgia
- 6T. South Dakota
- 8T. Alabama
- 8T. Indiana
- 8T. Utah
Business Incentives Programs
- 1. Georgia
- 2. South Carolina
- 3. Tennessee
- 4. Ohio
- 5. Alabama
- 6. Indiana
- 7. Virginia
- 8T. Mississippi
- 8T. North Carolina
- 10T. Kentucky
- 10T. Louisiana
- 10T. Texas
Competitive Labor Environment
- 1. Georgia
- 2T. Texas
- 2T. Tennessee
- 4. North Carolina
- 5. South Carolina
- 6T. Arizona
- 6T. Michigan
- 8T. Ohio
- 8T. Virginia
- 10. Alabama
Logistics & Infrastructure
- 1. Georgia
- 2. Virginia
- 3T. Ohio
- 3T. Texas
- 5. Indiana
- 6. South Carolina
- 7. Tennessee
- 8. Illinois
- 9. North Carolina
- 10. Florida
Access to Capital & Funding
- 1. California
- 2. Texas
- 3. New York
- 4T. Massachusetts
- 4T. Virginia
- 6. Illinois
- 7. Georgia
- 8T. Michigan
- 8T. North Carolina
- 10T. Colorado
- 10T. Tennessee
Available Real Estate
- 1. Georgia
- 2T. South Carolina
- 2T. Texas
- 4. Tennessee
- 5. Ohio
- 6. North Carolina
- 7T. Alabama
- 7T. Indiana
- 9. Michigan
- 10T. California
- 10T. Florida
- 10T. Illinois
Energy Availability & Costs
- 1T. Georgia
- 1T. Tennessee
- 3T. Alabama
- 3T. North Carolina
- 5. Mississippi
- 6T. Louisiana
- 6T. South Carolina
- 8T. Iowa
- 8T. New York
- 8T. Ohio
- 8T. Oklahoma
- 8T. Texas
- 8T. Washington
Speed of Project Permitting
- 1. Alabama
- 2T. Georgia
- 2T. South Carolina
- 4. Tennessee
- 5T. Mississippi
- 5T. Texas
- 7T. Arizona
- 7T. Indiana
- 7T. Louisiana
- 10. Virginia
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Categories:
- Overall Cost of Doing Business
- Business Incentive Programs
- Access to Capital & Funding
- Competitive Labor Market
- Workforce Development Programs
- Energy Availability & Costs
- Logistics & Infrastructure
- Available Real Estate
- Cooperative & Responsive State Government
- Corporate Tax Structure
- Site-Readiness Programs
- Favorable Regulatory Environment
- Speed of Project Permitting