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Top States for doing Business – 2015

Admin | 23.09.2015

Area Development magazine has just produced their 2015 annual report on the top US states for business and wanted to share their findings with you. The site and facility planning periodical surveys the 50 states in three main categories: Business Environment, Labor Climate, and Infrastructure/Global Access. Within these three categories, another 21 sub-categories are reviewed to produce this report.

Area Development magazine has just produced their 2015 annual report on the top US states for business and wanted to share their findings with you. The site and facility planning periodical surveys the 50 states in three main categories: Business Environment, Labor Climate, and Infrastructure/Global Access. Within these three categories, another 21 sub-categories are reviewed to produce this report.

So who are the Top Ten and why?

For a more detailed analysis, we encourage you to consult the Q3 edition of Area Development. For purpose of brevity, we provide the state’s individual scores for Overall Cost of Doing Business and the categories they achieved a #1 ranking in. The top ten states with the highest combined scores in the 21 sub-categories are:

#1 – Georgia

Georgia ranked #1 in the following areas:

Business Environment (Incentive Programs, Cooperative State Government, and Most Favorable Regulatory Environment)

Labor Climate (Labor Climate-Right to Work and Leading Workforce Development Programs)

Infrastructure/Global Access (Distribution & Supply Chain Hubs)

Overall Cost of Doing Business: #3

#2 – Texas

Texas ranked #1 in the following areas:

Business Environment (Corporate Tax Environment, Access to Capital & Project Funding, and tied with Georgia for Most Favorable Regulatory Environment)

Labor Climate (Availability of Skilled Labor)

Infrastructure/Global Access (Energy Reliability/Smart-Grid Deployment)

Overall Cost of Doing Business: #2

#3 – South Carolina

South Carolina ranked #1 in the following areas:

Business Environment (Incentive Programs, Cooperative State Government and Speed of Permitting)

Overall Cost of Doing Business: #1

#4 – Tennessee

Tennessee ranked #1 in the following areas:

Infrastructure/Global Access (Certified Sites/Shovel-Ready Programs and Competitive Utility Rates)

Overall Cost of Doing Business: #5

#5 – Alabama (TIE)

Alabama ranked #1 in the following area:

Labor Climate (Competitive Labor Costs)

Overall Cost of Doing Business: #4

#5 – Florida (TIE)

Florida did not have a #1 ranking in any of the sub-categories.

Overall Cost of Doing Business: #7

#6 – Indiana

Indiana ranked #1 in the following area:

Infrastructure/Global Access (Highway Accessibility)

Overall Cost of Doing Business: Did not achieve top 10 ranking.

#7 – North Carolina

North Carolina did not have a #1 ranking in any of the sub-categories.

Overall Cost of Doing Business: #9

#8 – Louisiana

Louisiana did not have a #1 ranking in any of the sub-categories.

Overall Cost of Doing Business: #6

#9 – Ohio

Ohio did not have a #1 ranking in any of the sub-categories.

Overall Cost of Doing Business: Did not achieve top 10 ranking.

#10 – Kentucky

Kentucky ranked #1 in the following area:

Labor Climate (Labor Climate Non-Right to Work)

Overall Cost of Doing Business: Did not achieve top 10 ranking.

In the past four years, the top three states in overall rankings have remained the same (Georgia, South Carolina and Texas). Here are the top rankings within the three main categories:

Business Environment

#1 – Texas

#2 – South Carolina

#3 – Georgia

#4 – Louisiana

#5 – Tennessee

Labor Climate

#1 – Georgia

#2 – South Carolina

#3 – Texas

#4 – North Carolina

#5 – Alabama

Infrastructure/Global Access

#1 – Tennessee

#2 – Georgia

#3 – Texas

#4 – Indiana

#5 – Illinois

The report reflects a continuing trend of businesses migrating eastward away from the previously dominant state of California. Nine of the eleven states in the top 10 ranking are in the southeastern US. The report further states that, “It is not surprising to see Georgia rank as the Top State for Doing Business. Georgia places strong in overall cost of doing business and has a diverse workforce. Millenials are now driving the workforce equation, and their decision to call Southern States home has had a positive impact on the corporate and tech sector growth throughout the region.”

The QualiFind Group has experienced growth that is very much attributable to these dynamics through the addition of its Atlanta-based technology recruitment practice – TechQfind in late 2013. TechQfind’s practice leader – Mark Haas credits much of the practice’s growth to serving the technology recruitment needs for such Atlanta-based corporations as IHG, Home Depot, Turner Broadcasting and a recent transplant from California – Cox Communications.

Much of Area Development’s report is based on growth in the industrial / manufacturing sector, but technology is also playing a huge role in the south’s economic expansion. Mark Haas goes as far as calling Atlanta – the Silicon Valley of the South. He supports this by attributing the $1.2 billion in venture capital contributions to new startup investments into Atlanta’s tech ecosystem over the past five years. Mark says that local infrastructure such as the ATDC, Hypepotamus, Tech Village and Georgia Tech provide both short and long term support for continued growth both in Atlanta but also the burgeoning south.

While The QualiFind Group conducts recruitment and executive search services from offices across North America and Latin America, we are finding ourselves serving more and more corporate hiring stake holders that are located in or newly located in the Midwest or Eastern Seaboard. If your company is based in California, you may want to consider what a potential geographical relocation may look like for you and your career.

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