2023 Top States Commentary: Southern and Midwest States Provide Businesses with Important Resources

Access to training programs as well as incentives for automation are helping companies meet their workforce needs in the top-ranked states.

Ben Worrell , Principal, McGuire Sponsel
Emily Poole, Senior Consultant, McGuire Sponsel

Q3 2023

With two of McGuire Sponsel’s four offices in the Midwest and Southeast, our Location Advisory Services team was not surprised to see high rankings for Midwest and Southern states. Our work with many of these state and local authorities and economic development teams would support such a leading ranking for these states. Southern and Midwest states have done a tremendous job in supporting environments that help to control costs and make resources widely available. These two factors are critical to future successful business operations, which companies integrate into their location decisions.

We also observe that companies are still highly influenced by the average wages and available workforce within an area. Understanding that wages are high and that the available workforce has been limited over the last couple of years, access to training programs is extremely important for growing a workforce internally for many businesses. Additionally, states that support companies with investment incentives for automation help them bridge the gap due to a limited available workforce and increasing production demands. Process automation will only continue in the future, and states that support these investments will continue to see significant economic development traction. Similarly, states should expect greater demand for support with sustainable or renewable projects as more and more businesses are looking to make direct investments in those areas.

The results of the Area Development’s Top States for Doing Business survey show that regions appear to have what we call a “node” state (a top performer), with surrounding states competing for business with similar programs and resources. For example, Georgia was listed as the number-one state in seven out of 14 categories and in the top five for five other categories. However, Tennessee and North and South Carolina were always within a few positions. Similarly, Ohio performed well in many categories, with Indiana, Virginia, and Kentucky close behind.

States that consider neighboring programs and seek to replicate or improve on them will continue to deliver value to businesses making critical location decisions. We believe there are a few states to keep an eye on, such as Iowa in the Great Plains region, Arizona in the West, and Louisiana in the South. These states have seen significant growth and were in the top 10 in several categories. They continue to innovate and evaluate their performance against their peers and (we believe) will continue to rise in the rankings.

TOP STATES FOR DOING BUSINESS 2023

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

Individual Categories

Workforce Training Programs

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

Overall Cost of Doing Business

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

Business Incentives Programs

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

Access to Capital & Funding

1. California
2. New York
3. Texas
4. Massachusetts
5. Georgia
6. Virginia
7. Illinois
8. North Carolina
9.Arizona
10. Maryland

Competitive Labor Environment

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

Energy Availability & Costs

1. Georgia
2. Tennessee
3. South Carolina
4. Alabama
5. North Carolina
6. Texas
7. Washington
8. Oregon
9. Indiana
10. Iowa

Water Availability

1. Ohio
2. Michigan
3. Tennessee
4. South Carolina
5. North Carolina
6. Georgia
7. New York
8. Wisconsin
9. Washington
10. Virginia

Logistics & Infrastructure

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

Available Real Estate

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

Cooperative & Responsive State Government

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

Corporate Tax Structure

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

Favorable Regulatory Environment

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

Speed of Project Permitting

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

Categories:

Ben Worrell , Principal, McGuire Sponsel
Ben Worrell, MBA, leads the Credit & Incentive Services practice for McGuire Sponsel’s Indianapolis office. Ben works closely with McGuire Sponsel’s alliance firms and referral partners throughout the United States to identify, procure, and maximize economic development opportunities. He fosters client relationships by guiding clients through the intricate procurement and negotiation process associated with credits and incentives benefits. Through his time as a small business advocate and advisor across management and economic development roles, Ben understands the value of a strong partnership between the client and the community. Across McGuire Sponsel’s four offices and national client footprint, Ben and the Credits & Incentives team offer a seamless and integrated approach for clients of all sizes and industries. Ben graduated from Hanover College with a political science degree and received his MBA from Cedarville University.
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Emily Poole, Senior Consultant, McGuire Sponsel
Emily Poole joined McGuire Sponsel in 2021 as a Credits & Incentives Consultant after nearly a decade in public economic development offices. Emily is now a Senior Consultant with a wealth of knowledge and expertise in tax credits and state incentive programs and enjoys assisting companies with their site selection efforts. Additionally, Emily has extensive contacts in economic development and experience with projects across a variety of industries. Previously, she served as a regional project manager for the Georgia Department of Economic Development where she led projects in the Metro Atlanta Region. Prior to joining the Georgia DED, Emily worked at a number of local-level economic development entities in a variety of capacities. She earned both a Bachelor of Science in Psychology & Human Services and an MBA in International Business from Clayton State University in Atlanta, Georgia. She has completed a number of economic development training programs and is currently working toward her Certified GA Economic Developer credential through the University of Georgia.

2023 Top States Commentary: Southern and Midwest States Provide Businesses with Important Resources

Access to training programs as well as incentives for automation are helping companies meet their workforce needs in the top-ranked states.

Ben Worrell , Principal, McGuire Sponsel

Emily Poole, Senior Consultant, McGuire Sponsel

Q3 2023

TOP STATES FOR DOING BUSINESS 2023

Individual Categories

Workforce Training Programs

Overall Cost of Doing Business

Business Incentives Programs

Access to Capital & Funding

Competitive Labor Environment

Energy Availability & Costs

Water Availability

Logistics & Infrastructure

Available Real Estate

Cooperative & Responsive State Government

Corporate Tax Structure

Site-Readiness Programs

Favorable Regulatory Environment

Speed of Project Permitting

Ben Worrell , Principal, McGuire Sponsel

Emily Poole, Senior Consultant, McGuire Sponsel

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