Forbes Best States For Business: See Virginia's Ranking

Virginia ranks fourth in the country for business climate, according to a new report from Forbes. The American business magazine published its 13th annual “Best States For Business” rankings Wednesday.

Forbes said the rankings were calculated based on more than 40 metrics spanning six categories: business costs, labor supply, regulatory environment, economic climate, growth prospects and quality of life. The Commonwealth fell between Texas and Nebraska in Forbes’ overall rankings. Here’s a breakdown:

Business costs

• Rank: 28

Labor supply

• Rank: 3

Regulatory environment

• Rank: 1

Economic climate

• Rank: 27

Growth prospects

• Rank: 16

Quality of life

• Rank: 1

Here’s what Forbes had to say about Virginia:

"Virginia ranked as the Best State for Business as recently as 2013, but higher business costs and a declining economic climate have pushed it lower. The state ranked among the top two states every year from 2006 through 2013," the magazine wrote.

"Virginia ranks first for its regulatory climate because of its strong incentive offerings and business-friendly government policies. Virginia has a widely diverse economy that includes local and federal government, military, farming and manufacturing. The state scored a big win in 2018 when e-commerce giant Amazon announced plans to locate one of its new headquarters in Arlington County's Crystal City neighborhoods. The move should add 25,000 jobs. The state is nicknamed Old Dominion and the Mother of Presidents after the eight U.S. presidents born there," Forbes says.

SEE ALSO:

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• Amazon HQ2 Decision Spurs Major Change To Potomac Yard Metro
• Homeless Shelter To Amazon's Bezos: Don't Forget Alexandria
• Innovation Campus, Other Amazon HQ Impacts Coming To Alexandria
• NoVa's New Congresswoman 'Concerned' About Amazon HQ2

The rankings suggest business people ought to consider moving to North Carolina, which topped the list for the second consecutive year. The authors prasied “The Tar Heel State” for its high net migration rate. Many more people have flooded into the state than have exited, the authors said. The state also has one of the smallest number of unionized workers in terms of percent of total employment.

“The resulting benefit is labor costs that are 9 percent below the national average — sixth lowest in the country,” the magazine wrote.

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Here are the top 10 states for business:

1. North Carolina
2. Utah
3. Texas
4. Virginia
5. Nebraska
6. Georgia
7. Florida
8. Colorado
9. Minnesota

Two years ago, North Carolina supplanted Utah as the best state for business. Utah had claimed the top spot six times in seven years from 2010-16, but dipped last year due to increasing business costs and weakening economic outlook, Forbes said. But the state remains one of the best due to its business-friendly climate, low energy costs and increasing employment.

On the other hand, Alaska, West Virginia, Maine, Vermont and Hawaii were, respectively, the worst states for business. Alaska’s economy is dependent on oil and gas — which account for more than 80 percent of the state’s revenue — and the drop in oil prices has hurt the state’s economy, Forbes said.

“Alaska's economy shrunk faster than any other state over the past five years (down 2.6 percent per year), and net migration out of the state also ranks worst in the nation,” according to the report.

The state’s employment outlook also ranked dead last over the next half-decade, with Alaska not expected to net any jobs.

Click here to read the methodology.

Patch national staffer Dan Hampton contributed to this report.

Photo credit: Spencer Platt/Getty Images