The best US state for business in 2021 is a repeat winner

In spite of all of the challenges and changes that 2020 presented, the US state ranked as best for business is a repeat winner seen as best positioned to succeed as the threat of the coronavirus pandemic recedes.

Virginia took the top spot in CNBC’s 2021 survey – the fifth time it has done so since the business news network began comparing the competitiveness of the states back in 2007.

It is also the first time that a state has won a back-to-back victory, with the commonwealth also taking the top spot in 2019. CNBC did not publish a ranking in 2020 due to the coronavirus pandemic.

The network cites the state’s greatest strength as being its ability to nurture and retain talent through a well-performing public school system and reliably funded world-class higher education.

Virginia has one of the best-educated workforces in the country, with almost 39 per cent of workers having a bachelor’s degree or higher, according to the US Census Bureau.

US Bureau of Labor Statistics data also shows the state as having the nation’s third-highest concentration of science, technology, engineering, and maths workers.

The Port of Virginia in Norfolk is also named as a major factor in the economic success of the state with May 2021 seeing an all-time record for traffic.

Currently in the middle of a 10-year, $1.5bn expansion, Democratic Governor Ralph Northam says that the port is a “tremendous asset for our economy”.

States are scored in 10 categories with a total of 2,500 points up for grabs. Virginia came top with 1,587 points.

The categories are the cost of doing business; infrastructure; life, health, and inclusion; workforce; economy; business friendliness, access to capital; technology and innovation; education; and cost of living.

In second place to Virginia is North Carolina, followed by Utah, Texas, and Tennessee. At the bottom of the pack is Alaska. The greatest improver was Maryland which leaped 31 places from its 2019 position to finish 12th.

Governor Northam welcomed the news as a “testament to Virginia’s workers, our education system, our commitment to diversity, and our strong business climate”.

He cited recent investments in internet connectivity, increased teacher pay, expanded early childhood education, community colleges, and green energy as factors in keeping the state in the top spot.

“Virginia is proving that when you treat people right, it’s good for everything, and it’s also good for business,” Mr Northam said.

“Our path forward could not be more clear: We have to keep up these policies we know are working that support business and the economy, and that are open and welcoming to everyone.”

Announcing the award, CNBC’s Scott Cohn said: “This year’s study was always going to be a verdict on which states were best poised to succeed coming out of the pandemic, and Virginia is a clear winner on that score.”

He added: “Not only does it have the talent that companies are craving, it has also taken major steps in the area of inclusiveness, which is especially important this year.”