- A state’s economy can be crucial in attracting new businesses, and in retaining existing ones.
- Companies prefer a state with stable finances, ample budget reserves, and solid growth.
- Economy is among the most important categories in CNBC’s Top States for Business study. Some states do much better than others.
It is the proverbial election year mantra: “It’s the economy, stupid.” But when it comes to attracting business to a state, the economy doesn’t only matter every four years.
Companies want to locate in states with strong growth, stable finances, and a healthy housing market. They also like a diverse economy with lots of big corporations to partner with, and a healthy flow of international investment.
States know this, which is why they often point to their economies when they market themselves to business. And it is why the Economy category is important in CNBC’s annual America’s Top States for Business rankings. Our study includes ten categories of competitiveness, weighted based on how frequently they appear in state economic development marketing. Under this year’s methodology, Economy accounts for 14% of a state’s total score.
We consider economic growth and job growth. We look at state finances, fiscal reserves, pension obligations and credit ratings. We also look at the overall health of the housing market. We measure the breadth of each state’s economy by looking at how many major corporations are headquartered there. We evaluate the entrepreneurial…
