(The Center Square) – Business executives responding to major industry surveys consistently ranked Texas first this year for having the best business climate in the United States.
This month was no different than previous months, with Texas once again ranking #1 for having the best business climate, this time by Development Counselors International (DCI).
“Business executives and location advisors were asked to list the top three states they perceive to have the most favorable business climates and the rationale for their selection using an open-ended question” , DCI explain.
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 more than 50% support from respondents, receiving 54% of the vote. The second highest percentage received was Florida, 33%.
Texas received its ranking because of its favorable tax climate, overall business-friendly regulatory environment and access to talent, according to the report.
Conducted every three years, the DCI Winning Strategies in Economic Development Marketing The survey asks U.S. business executives and location advisors to rank states based on several factors, which ultimately determine which state has the best business climate. Texas ranked first this year for the ninth consecutive edition of DCI’s survey, first launched in 1996.
In response to the rankings, Texas Governor Greg Abbott said, “Texas is number one again, thanks to hardworking Texans and the endless opportunities for success in our great state. Business leaders and business leaders across the country continue to choose Texas because they know that the freedom and opportunity our state has to offer can’t be found anywhere else in the world. Businesses are coming to Texas in droves because we offer attractive, pro-growth policies where businesses – and individuals – can thrive.
“With no income tax, no reasonable regulatory environment, and a young, skilled, growing workforce, Texas is leading innovation and economic prosperity. Texas actually has the #1 business climate in the country.
DCI’s ranking comes after Texas and five other southern states added more to national GDP than the entire Northeast in 2020-21, 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 direct an estimated $100 billion in new revenue to the Southeast in 2020 alone and 2021, while the Northeast lost about $60 billion, according to an analysis of data recently released by the Internal Revenue Service,” Bloomberg reported.
DCI’s rankings also follow others this year in ranking Texas first for business. In March, Site Selection Magazine awarded Texas the Governor’s Cup for a record 11 consecutive years. Texas received the award for attracting the greatest number of business relocation and expansion projects in the United States.
Texas also ranked first this year for the 19th consecutive year as “the best state for business” by America’s top CEOs in Business Facilities Magazine’s annual rankings.
“In 2022, Texas attracted more than 1,000 projects, more than double the second-largest state, representing an expected investment of $44.75 billion and the creation of more than 35,000 jobs,” according to the Business Facilities report. “Foreign direct investment represents $16.3 billion and about half of the new jobs recorded for that year.
Governor Abbott often refers to Texas as “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 metropolitan area has the second most Fortune 500 corporate headquarters in the United States, of 25. The Dallas-Fort Worth-Arlington metropolitan area has the third most of 24. The municipalities of Houston and Dallas have the largest number of Fortune 500 headquarters in the United States. the United States of 22 and 11, respectively.