Top 10 States for Doing Business Inc Georgia, North & South Carolina

Area Development has just released the results of its annual survey of site selection consultants about the best states for doing business. Southeastern states were heavily represented in the Top Ten, with Georgia coming in first nationally, and South and North Carolina ranking No. 3 and No. 8, respectively.

Consultants were asked to rank states based on three factors: business environment; labor climate; and infrastructure and global access. Each of the three states ranked high on all factors.

Georgia’s No. 1 ranking resulted from recent reforms to its workers compensation laws; a strong infrastructure including two deep-water ports, an extensive surface transportation network, and Hart International, one of the world’s most efficient passenger airports; and a highly-skilled workforce, aided by Georgia’s Quick Start program, which develops skilled workers for Georgia’s manufacturing economy.

Third-ranked South Carolina similarly scored highly on all metrics. South Carolina aggressive incentive policies help it achieve the lowest cost of doing business of any state. The consultants lauded the quality of its workforce, supported by ReadySC, the training program aimed at producing highly skilled workers for the new manufacturing economy. Major manufacturers are expanding their footprint in South Carolina, with Boeing deciding to manufacture its new stretch Dreamliner at its plant in North Charleston, adding 3,600 jobs in the next few years, and BMW expanding its Spartanburg plant with a $1 billion investment that will add 800 jobs. After the expansion, BMW’s Spartanburg plant will export more automobiles than any other automotive plant in the United States.

Site selection consultants praised No. 8 North Carolina for its recent corporate tax reform, calling it the best tax reform plan of any state in a generation. North Carolina ranks highly for critical infrastructure and for low utility rates, energy reliability, smart-grid development, and certified shovel-ready programs. The quality of its workforce, anchored by the educational institutions in Research Triangle that produce qualified workers for the knowledge economy, was also a reason for North Carolina’s high ranking.

At Two Bridges Asset Management LLC, people frequently ask why our investment strategy focuses on the Southeastern United States. One reason is the long-term population shift toward this region, and away from the Northeast and Midwest, which has been ongoing for decades. But just as important is the region’s aggressive courting of business through infrastructure development, education and training programs targeted at creating a skilled workforce for the new economy, and the low overall cost of doing business. These factors have resulted in a steady migration of well-paying manufacturing and new economy jobs to these states – obviously good news for real estate investors. South Carolina, for example, already exports more automobiles than any other state. In the upcoming weeks we will explore a Boston Consulting Group study concluding that South Carolina’s overall manufacturing costs are competitive with China, obviously a strong sign that the state will continue to be attractive to manufacturing.