Ever wondered how CNBC chooses the ideal states to do business? We got you covered! Read on for more on this.
CNBC uses data analysis to come up with the list. The CNBC staff then scores the 50 states on 64 metrics across 10 categories. It is not based on opinion but the actual performance by the states. The states are graded based on the qualities they believe attract business.
The states are then provided with a letter grade for each of the 10 categories in a bid to measure their performance. However, ranking is solely based on points scored. So, here are this year’s categories.
- Workforce
They are graded in regards to the number of employees available, education level of the workforce, and overall migration of the college-educated workforce. Also, they consider how well employees are versed in STEM and workforce productivity based on economic output per job. They also consider the right-to-work laws per state.
- Economy
For a business to thrive, there ought to be a vibrant and diverse economy. The organization looks economic growth, residential market health, and rate of job creation. Another aspect is the budget picture and retiree health care obligations and pension health. Also, they consider the number of behemoth corporations that are headquartered there.
- Infrastructure
How well are people able to access markets? They assess the state’s transportation system by considering the value of goods transported via air, road, rail, and waterways. Also, they look at the number of roads, bridges, and availability of air travel per state. They measure the time one gets to work and how many people travel per day.
- Cost of doing business
They look at the tax climate of a particular state and if there are state-sponsored incentives that lower the cost of doing business. The cost of renting an office, industrial space, and cost of wages is also considered.
Others include education, quality of life, access to capital, technology & innovation, business friendliness, and cost of living.
Source: https://www.cnbc.com/2019/06/08/how-cnbc-chose-americas-top-states-for-business-in-2019.html
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