Top States for
Business in 2024

What Did the 2024 Report Reveal?

For the eleventh consecutive year, Georgia has secured the top spot, ranking highly across multiple categories: Access to Qualified Labor (#3), Business Incentive Programs (tie #1), Favorable Regulatory Environment (#2), and Logistics and Infrastructure (#2). Georgia’s strong performance in these areas underscores its appeal to businesses seeking a competitive, business-friendly environment.

Other southeastern states continue to excel, with South Carolina (#2), Tennessee (#3), North Carolina (#4), and Alabama (#8) all maintaining top positions. Indiana (#5), Ohio (#6), and Texas (#7) also rank among the top ten, recognized for their robust business climates and favorable tax environments. Notably, South Carolina ranked #1 for Business Incentive Programs, while Texas secured the top spot for Corporate Tax Structure, and Indiana was highlighted for its Overall Cost of Doing Business.

Insights From the Rankings

The Area Development report offers a snapshot of how states are competing to attract business investments. High-ranking states often combine favorable tax policies with robust infrastructure and workforce development programs, making them attractive for a wide range of industries. While these rankings provide a general guide to business climates, companies should consider their unique needs when evaluating potential locations.

For businesses contemplating expansion or relocation, these rankings can serve as a starting point. However, effective site selection requires going beyond the numbers to assess factors such as access to skilled labor, proximity to suppliers and markets, and local regulatory environments. The right location can significantly impact a company’s operational efficiency and long-term success.

Site Selection Considerations for Businesses

Choosing the ideal location is more than just picking a high-ranking state. It involves a comprehensive analysis of your business needs and how they align with the characteristics of potential sites. For instance:

• Workforce Availability: Does the region offer the skilled labor your business needs to thrive?
• Incentive Programs: Are there state or local incentives that can offset initial setup and operational costs?
• Infrastructure and Logistics: How well does the state support your supply chain and distribution requirements?

While the Southeast and Midwest are known for their competitive business environments, it’s crucial to evaluate each location’s unique attributes in the context of your operational strategy. A strategic approach to site selection can mitigate risks and unlock significant cost savings.

Final Thoughts

The Southeast and Midwest continue to attract significant business investment, but the decision on where to locate should always be guided by a detailed understanding of how a particular site aligns with your business goals. As states compete to attract businesses, a nuanced approach to site selection—considering both the quantitative and qualitative factors—can ensure that your location choice supports your long-term success.