Yahoo Finance NC falls just short of three-peat on CNBC’s Top States for Business list. Why it’s No. 2.
By a record-thin margin, Virginia nipped North Carolina to top CNBC’s latest annual rankings of best states for businesses.
Its northern neighbor denied the Tar Heel State a third-consecutive win on the list, which economic leaders say holds cachet when employers consider where to invest.
Virginia and North Carolina have owned the rankings over the past five years, with no other state finishing No. 1 since 2018. And the southeastern United States continues its strong performance in the rankings. Texas, Georgia and Florida rounded out this year’s top five.
Only three points separate the top two spots.
What assigned North Carolina to runner-up status in 2024 was infrastructure, the most-weighted metric. The state finished No. 20 in this category, with CNBC highlighting a U.S. Environmental Protection Agency estimate that North Carolina water utilities will need $20 billion in repairs over the next two decades. Virginia also ranked first in education, while North Carolina was No. 10.
North Carolina ranked highly for its economy (No. 4) and workforce (No. 3). It was also second-best in the country for “business friendliness,” which CNBC defines as “legal and regulatory framework that does not overburden business.” But the business news outlet said it was Virginia that led the way in offering companies a “wealth of shovel-ready sites” — something North Carolina is actively working to change.
The state has commissioned reports to identify the most attractive megasites (more than 1,000 acres) and non-megasites across North Carolina as both domestic and, increasingly, foreign manufacturers fill open land in the South. Regional competition continues to be strong. For example, North Carolina edged out Georgia for a large solar energy project by a Vietnamese company this year, but the Peach State landed a major Hyundai manufacturing plant a few years ago that North Carolina pursued.
North Carolina’s worst-performing category this year, with a No. 32 ranking, was “quality of life,” which takes into account child care facilities, crime rates, health care, voting rights and worker protections.
While the CNBC rankings represent bragging rights, they also get discussed when North Carolina courts potential new employers. Speaking at the NC Chamber’s Economic Forecast Forum in January, Economic Development Partnership of North Carolina CEO Christopher Chung said back-to-back top finishes gave the state “more looks” and “probably increases the chances that we’re going to come out of those efforts successfully.”
North Carolina economic leaders hope a dip to No. 2 doesn’t change that dynamic.
CNBC’s Top States for Business in 2024
Virginia
North Carolina
Texas
Georgia
Florida
Minnesota
Ohio
Tennessee
Michigan
Washington
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