(The Center Square) – Business executives responding to key industry surveys have consistently ranked Texas first this year for having the best business climate in the U.S.
This month was no different from previous months, with Texas ranking first again for having the best business climate, this time by Development Counsellors International (DCI).
“Corporate executive and location advisors were asked to list the top three states that they perceive to have the most-favorable business climates and the rationale behind their selections through an open-ended question,” DCI explains.
According to the DCI survey, the best states for business are Texas, Florida, Georgia, North Carolina and South Carolina. Texas was the only state to receive over 50% of support from respondents, getting 54% of the vote. The next highest percentage received was Florida’s 33%.
Texas received its ranking due to its favorable tax climate, its overall pro-business regulatory environment and access to talent, according to the report.
Conducted every three years, DCI’s Winning Strategies in Economic Development Marketing survey asks U.S. corporate executives and location advisors to rank states based on several factors, which ultimately rank which state has the best business climate. Texas ranked first this year for the ninth consecutive edition of DCI’s survey, which first launched in 1996.
In response to the ranking, Texas Gov. Greg Abbott said, “Texas is No. 1 again, thanks to hardworking Texans and endless possibilities for success across our great state. Corporate executives and business leaders across the nation continue to choose Texas because they know that the freedom and opportunity our state has to offer cannot be found anywhere else in the world. Companies are coming to Texas in droves because we offer attractive, pro-growth policies where businesses—and people—can thrive.
“With no state income tax, a reasonable regulatory environment, and a young, skilled, and growing workforce, Texas is at the helm of innovation and economic prosperity. Texas has, indeed, the No. 1 business climate in the nation.”
DCI’s rankings come after Texas and five other southern states added more to the national GDP than the entire northeast in 2020-2021, according to data from the Bureau of Economic Analysis and IRS data analyzed by Bloomberg News.
“A flood of transplants” to Texas, Florida, Georgia, North and South Carolina and Tennessee “helped steer about $100 billion in new income to the Southeast in 2020 and 2021 alone, while the Northeast bled out about $60 billion, based on an analysis of recently published Internal Revenue Service data,” Bloomberg reported.
DCI’s ranking also follows others this year in ranking Texas first for business. In March, Site Selection Magazine awarded Texas with the Governor’s Cup for a record 11 consecutive years. Texas received the award for attracting the most business relocation and expansion projects in the U.S.
Texas also ranked first this year for the 19th consecutive year as the “best state for business” by top American CEOs in Business Facilities Magazine’s annual ranking.
“In 2022, Texas attracted more than 1,000 projects, more than double the second-highest state, representing an expected $44.75 billion in capital investment and the creation of more than 35,000 jobs,” the Business Facilities report found. “Foreign direct investment accounts for $16.3 billion and about half of new jobs recorded for that year.”
Gov. Abbott frequently refers to Texas as the “headquarters of headquarters” because more Fortune 500 companies are located in Texas than in any other state.
This year, Texas ranked first for the second year in a row with 55 Fortune 500 companies located in the Lone Star State. The Houston metro area has the second-greatest number of Fortune 500 headquarters in the U.S. of 25. The Dallas-Fort Worth-Arlington metro area has the third greatest number of 24. The municipalities of Houston and Dallas have the most Fortune 500 headquarters in the U.S. of 22 and 11, respectively.