Delaware ranks No. 18 in new CNBC report about business. Find out why.

Delaware places No. 18 in CNBC’s newest report about America’s Top States for Business in 2023, with a No. 21 ranking for life, health and inclusion.

While those standings may sound like a win for Delaware, the First State fared better or worse than those values in some key categories used to create the rankings, including workforce, infrastructure, economy, cost of doing business, tech and innovation, business friendliness, and education.

CNBC scored all 50 states on 86 metrics in 10 broad categories of competitiveness. Each category is weighted based on how frequently each state uses them as a selling point in economic development marketing materials, ranking each state based on the attributes they use to sell themselves, according to CNBC.

Each state can earn a maximum of 2,500 points in this study, and the overall rankings are sorted based on a state’s score of out of 2,500.

What categories did Delaware place highly in?

Delaware received high placements in the categories of workforce, economy and infrastructure.

Ranking No. 4 for workforce, Delaware has seen ample development in recent years and an influx of new residents ready to enter the workforce.

According to a report from Today’s Homeowner released earlier this year, young adults ages 18 to 24 have been moving to large cities, mostly in the northern United States, while millennials, Generation X and baby boomers have chosen to pack their bags and move toward warmer, southern areas.

For the purposes of the study, those demographics were defined as: millennials (ages 24 to 44), Generation X (ages 45 to 54) and baby boomers (ages 55 to 74).

Delaware saw a net migration of 7,129 individuals move to the state based on 2021 Census data. Of that number, 2,820 were Gen Z, 1,247 were millennials and 4,794 were baby boomers.

The state’s No. 10 ranking for economy is bolstered by the string of new businesses popping up around the state. Whether it’s a new mom-and-pop shop, a family-owned restaurant or a commercial development project, Delaware’s major cities and small towns are always working on something new.

In recent months, we’ve seen Wegmans fans flock to the new store that opened last November, a new record store in Dover for the music enthusiasts, a 24-hour diner open on Concord Pike , among other new businesses.

And Delaware still has plenty more in store for the future, including a new Target and Sprouts Farmers Market in Middletown.

Delaware’s shores still see hordes of weekly visitors embarking on annual vacations, first-time visits to the beaches or day trips for a bite to eat and some tax-free, retail therapy.

Delaware ranks No. 19 for infrastructure, and its proximity to major cities nearby like Philadelphia and Baltimore are aided by easy access to the interstate, Wilmington Airport and short train rides from the local train stations.

Delaware boasts the Cape May-Lewes Ferry, taking passengers on foot, on bike or by car to the neighboring coastal town of Cape May, New Jersey.

What are other categories Delaware was ranked in?

Delaware falls in the middle of the pack with a No. 21 ranking for life, health and inclusion, a No. 24 ranking for tech and innovation, and a No. 26 ranking for business friendliness.

Even with a No. 21 ranking for life, health and inclusion, life can be better at the beach, and many residents of the Small Wonder are accustomed to the therapeutic feel of crashing waves on sandy shores and the charm of local beach towns.

Not to mention the delicious coastal cuisine waiting to transform your palate.

Delaware also has plenty of nature beckoning all to come take a walk or hike through lush forests, go cycling through woodlands and near thriving wetlands and swamps, kayak or canoe in its many waterways, or go camping at one of the state parks.

Our southern neighbors may disagree, but we have to say that watching Delaware change throughout the four seasons is an amazing spectacle, too. From sledding in the winter to traipsing among new blooms in the spring, there’s no shortage of awe-inspiring views and activities.

In the category of Tech and Innovation, Delaware placed No. 24 and for business friendliness, No. 26. There is a long list of companies setting up shop in Delaware, booming trade at the Port of Wilmington and a long history of inventions traced right back to the First State, most notably through the du Pont and Gore families.

Lenient tax codes, including a lack of corporate income tax for doing business beyond state lines, attract businesses to the state.

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What categories did Delaware rank poorly in?

CNBC’s report gave Delaware near-last place standings for the cost of doing business, coming in at No. 42, and education, coming in at No. 46.

The cost of doing business category is worth 290 points and measures each state’s tax burden, the strength of its business tax climate, wage and utility costs and the cost of office and industrial space.

Incentives and tax breaks that states offer to reduce business costs and available incentives targeted toward development in disadvantaged communities are also factored in, according to the report’s methodology.

Although No. 42 is low, Delaware’s thriving economy and business friendliness outlined above have resulted in plenty of corporations founding themselves in Delaware and local entrepreneurs turning their side hustles and hobbies into steady sources of income.

Whether it’s flipping kicks or assisted stretching, there’s room in the First State for you to turn your passion into a marketable business venture.

As for our schools, the education ranking is worth 125 points and measures K-12 benchmarks like test scores, class size and spending, according to the methodology.

This category also looks at the number of colleges and universities in each state, long-term trends in support for higher education, HBCU presence, and community college and career education systems.

Despite a No. 46 standing, Delaware is making strides toward improving education around the state and offering opportunities to ensure the success of younger generations.

From a culinary program supporting adults with disabilities to local high school students bringing home first place in a national STEM competition, there are plenty of wins to celebrate around the state.

Delaware also has addressed legislation in recent years focusing on implementing more mental health education in K-12 curricula along with increasing Black history instruction.

Got a tip or a story idea? Contact Krys'tal Griffin at kgriffin@delawareonline.com.  

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This article originally appeared on Delaware News Journal: Delaware ranks No. 18 in CNBC report about business and life