Andy Shapiro, Managing Director
Biggins Lacy Shapiro & Co.
Larry Gigerich, Managing Director
Ginovus
Indiana, ranked fifth in overall business environment, has continued to rise in the rankings during the past several years. The state is leading the Midwest in economic recovery. Changes to its tax structure and incentive programs, along with outstanding transportation infrastructure, have attracted many companies to the state. Despite the current economic conditions, Indiana's automotive sector has remained strong due to the presence of Chrysler, GM, Honda, and Toyota.
Bob Hess, Executive Managing Director
Newmark Knight Frank
Clearly the top states for doing business are predominantly in the Southeast and Southern regions of the country. Why? My opinion is that consistency in business development policy and predictability in business climates across multiple critical location factors will always be rewarded and recognized by corporate America no matter the state of the economy, and that is what Texas, Georgia, Alabama, the Carolinas, Tennessee, and some new rising stars such as Indiana and Louisiana continue to strive for.
Many of the states highlighted have new governors and each has gone on record saying that supporting existing business and nurturing small and medium enterprises is their #1 priority in terms of job creation - that also resonates well, as 80 percent of all jobs emerge from these categories of economic activity.
We do have to acknowledge Louisiana and how they have fought their way into the top 10. Governor Jindal and his administration have done an excellent job of developing sound, targeted economic development policy and notably calculated investment in their surging FirstStart program, which has played a determinant role in recent expansion success stories. Alabama's Governor Bentley has taken his small business background and made some marked changes in the state's incentives policies around small business, entrepreneurship, and business retention programs, which is a switch for a state whose economic development mantra has been predominantly business attraction.
One last comment: For the past two years, we have seen a malaise in Corporate America regarding the "war for talent," i.e., that is attracting and retaining talent pools at the highest technical and professional skill sets - for obvious reasons. But the real smart companies know that is not the case; they recognize people will drive innovation and development of new methods and technologies and our overall competitiveness with the world. For this reason, states with deep R&D and engineering talent pools, such Michigan and California, and others that ranked low in the survey, will rise in the results if they can invest wisely in their human capital and physical infrastructure, and implement reasonably friendly business environment policies that are consistent and predictable!
Andy Mace, Managing Director
Cushman & Wakefield Business Consulting
I work predominantly on manufacturing and distribution facility site selection initiatives, and the survey results are consistent with my own experience and my survey responses. When screening the eastern United States for optimal industrial operating conditions, the Southeastern States are especially competitive due to their attractive energy and labor costs, as well as the availability and cost of land. The region's continued population growth and rail and port infrastructure also create supply-chain advantages for many of our clients. These states' economies have advanced in recent decades such that their labor quality, industry-sector diversification, industrial services, and training resources are robust complements to their competitive structural costs. Furthermore, it is no coincidence that these top-performing states possess pro-business leadership and high-performing economic development organizations that excel at business outreach, customer service, and continuous improvement.
The optimal location for any facility should be identified through objective identification and evaluation of critical location drivers, infrastructure needs, and operating costs; these state rankings do not replace the mandate for a comprehensive site selection process. However, these states routinely compete against one another for projects and investment, so we may expect they will continue to evolve, adopt each other's best practices, and maintain their representation in these rankings.
