Forbes Names North Carolina ‘Best State For Business’
CHARLOTTE, NC — North Carolina ranks first in the country for business climate, according to a new report from Forbes. The American business magazine published its 13th annual “Best States For Business” rankings Wednesday.
Forbes said the rankings were calculated based on more than 40 metrics spanning six categories: business costs, labor supply, regulatory environment, economic climate, growth prospects and quality of life. North Carolina topped the list, followed by Utah, Texas, Virginia and Nebraska in Forbes’ overall rankings. Here’s a breakdown:
Business costs
Rank: 2nd
Labor supply
Rank: 11th
Regulatory environment
Rank: 8th
Economic climate
Rank: 12th
Growth prospects
Rank: 10th
Quality of life
Rank: 12th
Here’s what Forbes had to say about North Carolina:
“North Carolina ranks as FORBES' Best State for Business for the second straight year (2017 was its first time on top). With one of the highest net migration rates in the U.S., people have been flocking to North Carolina for the past decade. The state has the second smallest union workforce in the U.S. in terms of percent of total employment (South Carolina is first). The resulting benefit is labor costs that are 9% below the national average—sixth lowest in the country. North Carolina has ranked in the top five overall for 14 straight years. One impact on North Carolina's business community: the passage of the controversial HB2 or ""Bathroom Bill,"" which requires citizens to use the public facility that corresponds with their biological gender. The NBA pulled the All-Star game from Charlotte and the NCAA and ACC also bailed on hosting championships in the state. PayPal and Deutsche Bank froze expansion plans after the law passed. The NBA awarded the 2018 All-Star Game to Charlotte in May two months after the N.C. legislature partially repealed the bill.”
(For more news like this, find your local Patch here. If you have an iPhone, click here to get the free Patch iPhone app; download the free Patch Android app here.)
The rankings suggest business people ought to consider moving to North Carolina, which topped the list for the second consecutive year. The authors prasied “The Tar Heel State” for its high net migration rate. Many more people have flooded into the state than have exited, the authors said. The state also has one of the smallest number of unionized workers in terms of percent of total employment.
“The resulting benefit is labor costs that are 9 percent below the national average — sixth lowest in the country,” the magazine wrote.
Here are the top 10 states for business:
North Carolina
Utah
Texas
Virginia
Nebraska
Georgia
Florida
Colorado
Minnesota
Two years ago, North Carolina supplanted Utah as the best state for business. Utah had claimed the top spot six times in seven years from 2010-16, but dipped last year due to increasing business costs and weakening economic outlook, Forbes said. But the state remains one of the best due to its business-friendly climate, low energy costs and increasing employment.
On the other hand, Alaska, West Virginia, Maine, Vermont and Hawaii were, respectively, the worst states for business. Alaska’s economy is dependent on oil and gas — which account for more than 80 percent of the state’s revenue — and the drop in oil prices has hurt the state’s economy, Forbes said.
“Alaska's economy shrunk faster than any other state over the past five years (down 2.6 percent per year), and net migration out of the state also ranks worst in the nation,” according to the report.
The state’s employment outlook also ranked dead last over the next half-decade, with Alaska not expected to net any jobs.
Click here to read the methodology.
Patch national staffer Dan Hampton contributed to this report.
Photo credit: Spencer Platt/Getty Images
