According to Site Selection magazine, the state of Texas currently has the best business climate in the country. In being placed in the number one spot, Texas effectively ousted North Carolina from the position, which it has held for the past 10 years.
Atlas Van Lines’ annual study of corporate relocations in 2010, Texas saw more than 7,200 inbound relocations compared to just 5,300 outbound relocations. In all, 58 percent of inbound corporate relocations went to Texas. Furthermore, more than 40 percent of the new jobs created in the United States since June 2009 were created in Texas.
Despite these impressive figures, Site Selection analyzed a number of different factors in order to determine its 2011 rankings. Half of the total score was based on objective, data-driven information, while the other half was based on input provided by corporate real estate executives. The executives surveyed for the study placed Texas at the top due to the state’s lack of red tape, the amount of cooperation that takes place between the government and businesses, workforce availability, the lack of state income tax and the financial assistance that is available. Factors taken into consideration for the objective portion of the score included the following:
• Governor’s Cup ranking, which is a tally of new and expanded facilities from the previous year that is determined by Site Selection each year
• Total projects per million population
• Placement in the Competitiveness Ranking, which Site Selection determines each year.
• Qualified New Plants projects to date within the given year
• 2011 business tax climate as determined by the Tax Foundation
The states included in the top 25 list of states with the best business climate were:
• North Carolina
• South Carolina
• New York
If the state of Texas continues down the path that it has already started, it is likely to continue to hold onto the number one position for some time. Not only has the state seen significant economic progress in its four major metropolitan areas of Austin, Dallas, Houston and San Antonio, but it is also actively putting plans in place to help foster its booming business climate.