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Top 25 state business climate rankings – Texas dominates the list

Texas art print available on

Texas art print available on

Texas tops the list

Ask any Texan if the above image is true and if they’ve lived in Texas for more than a decade, they will agree. It’s not an ego thing, the state really is giant and has had one of the best business climates for many years. Atlas Van Lines’ annual study of corporate relocations in 2010 logged more than 7,200 relocations inbound to Texas, the sixth highest, claiming 58 percent of all inbound relocations in the entire nation. With Texas Governor Rick Perry vying for the Republican nomination for President, most have heard that 40 percent of all jobs created since 2009 were created in Texas.

What makes Texas the state to beat next year? According to survey respondents:

  • “a pro-business, entrepreneurial, right-to-work state”
  • “no state income tax, ease of pulling permits, available work force”
  • “the government makes it easy to do business”
  • “Texas is progressive, fewer regulations”
  • “willingness to work with business”
  • “the tax climate, regulatory environment, incentive programs and work-force development efforts”
  • “the state fights OSHA, EPA and other negative, useless regulations; no state income tax”
  • “work-force availability, existing facilities and good economics for labor and facilities”
  • “cooperation and flexibility of state and local officials; proactive in growing the economy.”

It’s not all about Texas

Although Texas took the overall top spot, other states actually ranked higher in other categories. North Carolina took the top spot for adding new plants in the 2011 calendar year and Louisiana brought the most jobs per capita as well as took the top spot for competitiveness. Texas has a big target on its back for repeatedly garnering top spots in various lists, but Louisiana is in a rebuilding phase and we suspect it may climb to a higher spot in 2012.

Methodology of Site Selection’s study:
Each of these categories is weighted 50 percent; the data side is comprised of five sub-categories: the state’s ranking in the Governor’s Cup tally of total new and expanded facilities the previous calendar year according to Site Selection’s New Plant Database, published each March; total projects per million population; the state’s placement in our annual Competitiveness Ranking, published each May; qualified New Plant projects year to date; and a new criterion this year — the states’ 2011 business tax climate as measured by the Tax Foundation.

Written By

Marti Trewe reports on business and technology news, chasing his passion for helping entrepreneurs and small businesses to stay well informed in the fast paced 140-character world. Marti rarely sleeps and thrives on reader news tips, especially about startups and big moves in leadership.


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