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Area Development - Site Selection, Facility Planning and Workforce Development

2020 Top States Commentary: Lower Business Costs, Decreasing Regulations

A hyper focus on creating business-friendly environments with less burdensome regulations has helped several states move up in the rankings.

Q3 2020
What will be remembered about the year 2020? Certainly, the COVID-19 pandemic has created dynamic shifts in how companies are doing business and thinking about the future. In addition, there is heightened awareness of the critical need to re-shore medical supplies and pharmaceuticals, and a focus on the creation of new businesses helping to combat the virus.

What should also be focused on is where in the U.S. does it make strategic business sense to locate to and expand within as time moves forward. Companies are keenly focused on reviewing business fundamentals that will allow them to weather the economic impact of the pandemic and chart a path forward, which makes this year’s ranking of the Top States for Doing Business particularly valuable.

Noteworthy in our team’s review of “the best” is that Georgia, Tennessee, and South Carolina remain on top for the second straight year. In fact, of the 12 Southeast States, nine rank in the overall top 20 states for doing business. Our project flow mirrors this indication given the region’s strengths in working hard to attract capital investment, particularly in advanced manufacturing, IT, and energy-related technologies.

Utah is the newcomer to the top 20 list, not surprisingly given its business-friendly policies, quality-of-life assets, and diverse economic base. Several Midwest States have increased their overall ranking to include Indiana, Michigan, Missouri, Illinois (Ohio stayed steady at No. 9), all recognized for their strategic efforts in lowering the cost of doing business, particularly corporation income tax rates. As in prior years, Texas remains a top location to do business in all categories except workforce training initiatives.

Those states whose ranking increased most notably over last year include, Virginia, Indiana, Florida, Michigan, and Missouri, likely attributable to their aggressive economic development strategies and hyper focus on creating business-friendly, lower regulatory burdensome environments.

TOP STATES FOR DOING BUSINESS 2020

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

Individual Categories

Overall Cost of Doing Business

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

Business Incentives Programs

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

Access to Capital & Project Funding

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

Competitive Labor Environment

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

Workforce Training Programs

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

Energy Availability & Costs

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

Logistics & Infrastructure

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

Site-Readiness Programs

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

Available Real Estate

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

Cooperative & Responsive State Government

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

Corporate Tax Structure

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

Favorable Regulatory Environment

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

Speed of Project Permitting

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

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