North Carolina is no longer the top state for business in the country, slipping to second place behind Virginia, as indicated in the latest rankings from CNBC. The state, which held the number one spot for the previous two years, saw a dip in its ranking in part due to infrastructure concerns, particularly utilities. CNBC's decision to weigh heavily on infrastructure this year played a significant role in reshuffling the rankings, with the state reportedly needing an estimated $20 billion for water utility maintenance over the next two decades, according to WCNC.
The close contest saw Virginia surpass North Carolina by a mere three points in a grading system encompassing 128 metrics across 10 categories of business competitiveness. Despite the drop, this marks the fifth consecutive year that North Carolina has been placed in the top three for business by CNBC. The state's strong performance in the past has been bolstered by significant investments from companies like Apple, Toyota, Wolfspeed, FUJIFILM Diosynth, and Boom Supersonic. "Investing in our people makes our continued success possible," Governor Roy Cooper said in a news release, touching on the importance of a highly-skilled workforce and robust public education. "hanks to our highly-skilled workforce built by our strong public schools and thriving economy with major investments from companies across all sectors, North Carolina continues to be a top destination for business." Cooper added, as reported by WRAL.
While North Carolina's infrastructural challenges may have nudged it from its top rank, the state's business landscape is evidently still amongst the nation's most favorable. The annual CNBC study is a closely-watched barometer for state economic health, setting benchmarks that many states aspire to meet. Its influence speaks to the competitive spirit of economic development departments and business communities across the United States. As reported by Charlotte Business Journal, the detailed comparison of metrics provides increased insights into the specific areas where states can improve and capitalize to attract business investments.
Commitment to workforce development and attracting diverse industries has been a hallmark of the state's strategy. On the wider scale, Texas, Georgia, and Florida followed in the ranking, while states like Hawaii, Mississippi, Alaska, Louisiana, and Montana rounded out the lower end of the listed states, per the information obtained by WRAL.
