Consultants Forum Advertise
Subscribe
Close

  • Free for qualified executives and consultants to industry

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

Subscribe Now
Renew

Area Development - Site Selection, Facility Planning and Workforce Development

2021 Top States Commentary: Pandemic Accelerates Pre-Existing State Trends

Pro-business tax structures, responsive state governments, workforce training programs, and site-readiness programs are allowing top-ranked states to hold their positions.

Q3 2021
The effects of COVID-19 have fueled many companies to recalibrate priorities for their location strategies and resulting real estate footprints. However, despite the implications COVID-19 has had on businesses and economic development organizations, the pandemic has accelerated many of the pre-existing state trends within the U.S. In reviewing this year’s rankings, the top 10 states for doing business remained the same as the prior year.

Texas and Florida upheld their top 10 ranking primarily because of their pro-business tax structures, while states in the Southeast — including Virginia, Tennessee, North Carolina, South Carolina, Georgia, and Alabama — maintained their competitive top-ranked positions in large part due to their cooperative and responsive state governments and workforce training programs. As the war for talent has intensified in recent years, labor availability continues to be a crucial driver for employers when creating and implementing a location strategy. As such, states that prioritize investing in workforce development continue to separate themselves as destinations for organizations looking to relocate or expand.

At the same time, Ohio and Indiana continued to prevail among the top 10 states primarily for their site-readiness programs and logistics and infrastructure. In light of significant supply chain disruptions caused by the pandemic, logistics and infrastructure play increasingly important roles as market connectivity to customers, clients, and suppliers is paramount. Successful markets will continue to benefit from a major airport, strong interstate/rail access, and other transportation infrastructure. As such, it is fitting that of the overall top 10 states for doing business, eight were rated among the top states for logistics and infrastructure, including Texas, Georgia, Tennessee, Indiana, South Carolina, Virginia, Ohio, and North Carolina. States that continue to invest in logistics and infrastructure are drawing the attention of both businesses and residents as they help cultivate more employment opportunities and increase productivity.

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

Exclusive Research