North Carolina Ranked As Top Place in Nation to Do Business

By Mark Hoerrner

The Tarheel state once again tackled the top spot on the rankings for the most attractive spot in the country to do business. Unseated in 2004 by Texas, North Carolina recaptured its spot on the list through a judged mix of actual new or expansion projects in the state as well as from input from corporate real estate executives and investors across the nation.

The rankings, published annually by Site Selection magazine, are one of the more accurate indices of where business growth is occurring in the U.S. The southern states are experiencing a boom in corporate growth because of a commitment by state legislatures to drive economic development through tax incentives and investment programs. Another factor is what kind of service companies get from economic development personnel, as voiced by David Murdock, owner of Dole Foods, which recently decided to renovate an old property in North Carolina into a major research facility.

"I've worked in most of the states, and I build all over the country, but I've never found any state as cooperative as the state of North Carolina," Murdock said in an interview with the magazine.

Fifty percent of the ranking scores are determined by the subjective opinions of real estate developers and executives. How states choose to deal with prospective business development—how much support, both physical and service-related—figures heavily in the direction business development and expansion flows around the country.

North Carolina’s success has been a reflection of a statewide investment in education, according to North Carolina Gov. Michael Easley. He said that the support of education has resulted in growth in the sector where the U.S. can be most competitive—high skill jobs, primarily technology positions—and that has resulted in an abundance of skilled workers for businesses to pull from whenever they relocate or build in the state.

Five other southern states—Georgia, Tennessee, Alabama, South Carolina, and Texas—were listed in the top ten. Many of the states were listed much lower in 2004 but had significant upgrades in 2005. The Peach State, ranked 3rd in 2005, was listed at 7th in 2004 and 12th in 2003. The state has been aggressive in attracting big business to the state, such as Toyo Tires, Suzuki, Honda, Caterpillar, and Perdue Farms. "Site Selection magazine reinforces what Georgians already know about our state: it is a great place for doing business," said Georgia Gov. Sonny Perdue. "Georgia offers new and existing companies the opportunity to grow and prosper, thanks to our highly skilled workforce, business-friendly environment, extensive infrastructure, and quality of life."

Other states, such as Texas, have heavily invested tax revenues in luring businesses to the state. In this year’s session, Texas lawmakers authorized $380 million in two economic development funds for the purposes of courting new business.