(The Center Square) – Corporate site selection and economic development magazine Area Development again ranks North Carolina a leading destination in the 2025 Top States for Business.
Georgia is first for the 12th consecutive year.
North Carolina, No. 1 in the CNBC best states for business ratings three of the last four years, has been fourth three straight years, and top five in the prior four years. South Carolina and Texas are 2-3, and Ohio fifth.
“Speed, workforce alignment, and energy infrastructure now define the best states for doing business – not just incentives or tax breaks,” the report says.
The methodology this year changed to split energy infrastructure into “energy availability” and “energy cost.” The report says this best analyzes the “unique challenges posed by the modern grid.”
“We also continue to elevate the importance of water access, permitting speed, and site readiness – all increasingly make-or-break factors in large capital investment decisions,” Area Development said. “The states that perform well aren’t just ‘pro business.’ They’re aligned.”
Across 15 categories judged, North Carolina was first in access to qualified labor and second each in corporate tax structure and favorable property tax. It was third in availability of sites, and cooperative local and state government.
The state didn’t make the top 10 for energy cost or favorable regulatory framework.
The other categories judged are business incentives programs; climate risk and resilience; energy availability; logistics and infrastructure; overall cost of doing business; site readiness programs; water availability; and workforce training programs.
North Carolina was fourth behind, respectively, Georgia, South Carolina and Tennessee also in 2024 and 2023. The Tarheel State was fifth each year from 2018 to 2022. Its place was eighth in 2017 when last outside the top five.
