Business Facilities State Rankings

8/8/2019 Business Facilities State Rankings

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very year, we strive to improveand expand our annual Rank-ings Report. Last year, weintroduced our revamped

Metro Rankings, which were pub-lished one month after we unveiledour traditional State Rankings. Thisyear, we are introducing a rankingsmega-package: our new andimproved State, Metro and Interna-tional (Global) Rankings, for the firsttime presented as a double-issue of Business Facilities.

Although we are confident ouryearly assessment of the pecking

order of states, metros and coun-tries is an accurate measure of eco-nomic development advances (or,in some cases, retreats), we con-stantly are refining our rankingscategories and criteria to make surethe results bring into focus emerg-ing growth sectors and accurately credit locations that are movingaggressively to maximize theirresources and seize the moment.

The key metric for our 2010

Rankings Report is growth. Inalmost every category, we have givenspecial emphasis to the growthpotential of each locations economic

development strategy. We even cre-ated a new categoryEconomicGrowth Potentialthat rewards themost effective overall strategy and itssuccessful execution.

ALTERNATIVE ENERGY ARRIVES

We reconfigured our green rank-ings this year, creating a bevy of alter-native energy leadership categories,reflecting the fact that going green

means a lot more today than simply sustainable building.Our new green categories address

the emergence of a burgeoning alter-native energy manufacturing sector,turbocharged with federal stimulusdollars, and the beginning of a renew-able energy power grid. We identify the locations that have staked a claimto leadership in wind, solar, geother-mal and bioenergy manufacturingand power generation.

Because national metrics/data foralternative energy initiatives are stillin the formative stages, our growthf actor heavily influenced our choices

in all of our new alternative energy-related categories. Renewablepowerprojects rapidly are moving off thedrawing board and directly into com-mercial operation. Our rankingsacknowledge that many of these proj-ects are happening in real-time; thetotal impact may continue to buildthroughout the year. Therefore, youcan assume that all of the top-rankedalternative energy locations come with

an up arrowwe expect to seerobust growth from them, and soon.The 2010 Rankings Report is a

barometer of the economic outlook.Last year, we tipped our hat to loca-tions that defied the downturn. Thisyear, we identify those who not only have survived but are poised to dom-inate the emerging New Economy.So what follows on these pages is not

just a list of winners: you can call itour Recovery Report.

COVER STORYBy Jack Rogers


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B U S I N E S S F A C I L I T I E S 1 1

D E S I G N :

M E G A N K N I G H T , G R O U P C A R T D I R E C T O R


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Not surprisingly, the top-ranked states in our new Eco-

nomic Growth Potential cat-egory track closely with our annualState of the Year and EconomicDevelopment Deal of the Year win-ners, which were announced in the

January issue of Business Facilities.South Carolina, our Gold Deal of

the Year honoree, sent a seismic shiftthrough the aerospace manufactur-ing sector when Boeing decided tolocate its second 787 assembly facil-

ity in the Palmetto State instead of itstraditional manufacturing base in Washington. We believe the selectionof N. Charleston as the manufactur-

ing site for Boeings best-selling com-mercial jet cements South Carolinas

status as a top-tier aerospace player,providing the basis for tremendousgrowth potential in coming years.

South Carolina already is home tomore than 100 aerospace-relatedcompanies operating in 23 countiesand employing more than 16,000people. The Boeing project isexpected to bring in nearly $7 billion

worth of economic activity to thestate and local economy and create

more than 12,000 direct and indirect jobs in the next 10 to 15 years.State officials said the deal repre-

sents the largest single economicdevelopment announcement in SouthCarolinas history. In addition to snar-ing our top ranking for EconomicGrowth Potential, the state jumped tofourth place in our flagship rankingfor Best Business Climate. Accordingto Gov. Mark Sanford, an improved

business-friendly reputation was vali-dated by Boeings choice.Boeings decision to expand their

presence in our state with an infusionof jobs and capital investment repre-sents not only enormously good newsfor our states economy, but also atelling dividend from our states con-tinued efforts to better our businessclimate, Gov. Sanford said.

Tennessee, our State of the Year

winner, has laid the foundation forrobust growth in automotive manu-facturing and clearly established itself as one of the players to watch in thealternative energy sector. The Volun-teer State, which grabbed our topranking in Automotive Manufactur-ing Strength, has continued to attractfirst-tier suppliers to support Chat-tanoogas selection as the site of Volk-swagens new vehicle assembly plant.The state also has established itself as

the polysilicon hub of the U.S.,cornering the market for the raw

material for solar panels and semi-conductors with back-to-back announcements that two of the

worlds largest polycrystalline siliconproducers (Hemlock Semiconductorand Wacker Chemie AG) are locat-ing major facilities worth a combined$3 billion in Tennessee. This wasquickly followed by ConfluenceSolars decision to put a $200-millionplant to produce mono-crystal sili-

con ingots for solar panels in Clin-ton, TN. In Knoxville, meanwhile, apartnership with Oak RidgeNational Lab aims to make the Inno-

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Economic GrowthPotential

1. SOUTH CAROLINA

2. TENNESSEE

3. VIRGINIA

4. NORTH CAROLINA

5. TEXAS

6. ARIZONA

7. UTAH

8. NEW MEXICO

9. KENTUCKY

10. KANSAS

Best BusinessClimate

1. TEXAS

2. VIRGINIA

3. UTAH

4. SOUTH CAROLINA

5. TENNESSEE

6. NORTH CAROLINA

7. FLORIDA

8. LOUISIANA

9. SOUTH DAKOTA

10. WYOMING


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vation Valley region a test bed foralternative energy-fueled mass tran-

sit. All of the above adds up to a well-earned second-place showing inEconomic Growth Potential and arespectable fifth place in Best Busi-ness Climate for Tennessee.

For the second year in a row, Texashas taken the top prize in our covetedBest Business Climate ranking.There are more than 20 input factorsthat helped determine the final out-come in our assessment of this flag-

ship category, including our rankingsfor Cost of Labor, Business Tax Cli-mate, Quality of Life, TransportationInfrastructure, Educated Workforce

and Economic Growth Potential. Wealso took a close look at per capita

GDP, population growth and energy costs/energy efficiency.The Lone Star State continues to

match its surging population with asolid strategy for attracting andexpanding new business. The list of recent facilities announcements is fartoo long to reproduce here [for asampling, see Texas Business Reporton page 44 of this issue]suffice itto say that Texas is maximizing its

return from an unbeatable combina-tion of low taxes, strong incentives,low energy costs, a relatively low costof labor and solid infrastructure.

Texas continues to rule the roostin state-by-state comparisons of

employment rates, GDP growth andpersonal income growth. A healthy number of the metros ranked in thetop 15 for the nations biggest gainsin private-sector employment aredeep in the heart of Texas.

Virginia blasted its way into thetop 10 in Best Business Climate witha second-place finish that was naileddown with a first-rate focus on jobs,

jobs, jobs.

Immediately after taking office in January, Gov. Bob McDonnell issuedan executive order creating a stateEconomic Development and JobsCreation Commission. McDonnellidentified an improved business cli-mate as a top priority for the new unit.

We must be aggressive in puttingin place the policies that will improveour business climate and make Vir-ginia a global job magnet, he said.

This Commission will be identify-ing new ideas and initiatives to makethe Commonwealth even more com-petitive in the global marketplace.

Virginias effort already is bearingfruit, most recently with anannouncement from defense giantNorthrop Grumman that it is relocat-ing its corporate headquarters fromthe West Coast to northern Virginia.

NEW BIOTECH POWERHOUSES

Our Biotechnology Strength rank-ing is labor-intensive, but we think its worth the effort. This year, we haveagain used government statistics andthe latest State Bioscience InitiativesReport, prepared by the Biotechnol-ogy Industry Organization (BIO) andBattelle, as a starting point. Weapplied 24 key criteria to develop ourranking, including the amount of state R&D funding and venture capi-

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BiotechnologyStrength

1. CALIFORNIA

2. TEXAS

3. PENNSYLVANIA

4. MASSACHUSETTS

5. KANSAS

6. NEW JERSEY

7. NORTH CAROLINA

8. ILLINOIS

9. MARYLAND

10. OHIO

Biofuels ManufacturingResearch Leaders

1. IOWA

2. ILLINOIS

3. FLORIDA

4. TEXAS

5. KENTUCKY

6. NORTH CAROLINA

7. OKLAHOMA

8. NEBRASKA

9. OHIO

10. KANSAS


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tal investments; the level of concen-trated occupational employment in

biotech; tax exemptions specifically tar-geted to biotech; the number of biotechfacilities; biotech patents generated;university grant funding; and bio-science higher education degrees,among other factors. A point scale wasapplied, giving credit to states thatactually invested in biotech facilitiesand/or had the highest concentration of employment in more than one biotechsubsector. Last, but certainly not least,

we weighed the data against the growthpotential of each states initiatives.California, the undisputed

birthplace of biotech, has success-

fully defended its crown as the heavy- weight champ of our Biotechnology

Strength ranking. The Golden Stateremains home to more than a thirdof the nations leading biotechnology firms and continues to leverage itshuge university system, moving for-

ward with the establishment of a network of world-class genomics labs. Itremains to be seen whether Califor-nias ongoing fiscal crisis eventually

will erode its standing as the center of the biotech universe.

Perennial contenders Pennsylvaniaand Massachusetts maintained theirleadership positions in our biotechranking, finishing third and fourth,respectively. Two emerging biotechpowerhouses, Texas and Kansas,flexed their muscles in this years con-test: Texas jumped into second placefrom last years mid-level showing of sixth, while Kansas vaulted into fifthplace, up from the number nine slot

in our 2009 ranking.Texas has continued to build itsbiotech industry, notching a 35 per-cent increase in biotech-related facil-ities and an 11 percent increase intotal bioscience employment,according to the 2010 Battelle/BIOreport. Battelle reported that Texasnow has nearly 3,000 biotech facili-ties and about 65,000 bioscience

workers. We also noted the amount

of R&D funding for biotech in Texas(approx. $2.5 million) and the num-ber of higher education degrees inbioscience, which exceeded 10,000.Texas not only is building a biotechmanufacturing base, it is growing askilled workforce to support it.

We continue to be impressed withthe work of the Kansas Bioscience

Authority (KBA), the key driver inthe Sunflower States remarkableprogress up the national biotech lad-

der. KBAs stewardship of a $581-million biotech investment fund is a

uniquely focused and highly success-ful campaign that brings togetherindustry, higher education and gov-ernment in a coordinated effort thathas made Kansas a national centerfor animal health research, a leader inpharmaceuticals and an emergingplayer in bioenergy.

Already established as the epicen-ter of a national Animal Health Cor-ridor, Kansas has been awarded with

a trifecta of major governmentbiotech research facilities, includingthe $650-million NBAF biodefenselab, the Arthropod-Borne AnimalDisease Research Lab and the Centerof Excellence for Emerging andZoonotic Animal Diseases at KansasState University. The NBAF, which

will be the nations premier biode-fense facility, is under construction inManhattan, KS, which earned our

number two spot in this years rank-ing of the top 10 metros for Eco-nomic Growth Potential.

EMPIRE OF THE SUN

When we began thinking about anew suite of alternative energy rank-ings, we confronted a basic question:do we prefer our rankings sunny-sideup or organically grown? We also weretempted to forget the whole thing and

go wind-surfing.But as we delved deeper into thedata, we realized that all of the majoralt energy players are not putting theireggs in one basket: they are aggres-sively moving to stake a leadershipposition in an entire menu of renew-able energy industries. Therefore, wetook the plunge and decided to createa ranking category for overall alterna-tive energy industry leadership.

Arizona, the established solar

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Alternative EnergyIndustry Leaders

1. ARIZONA

2. IOWA

3. MICHIGAN

4. FLORIDA

5. NEW MEXICO

6. TENNESSEE

7. KENTUCKY

8. CALIFORNIA

9. SOUTH CAROLINA

10. KANSAS


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energy king, easily took the top rank-ing. As detailed in our April cover

story, Arizonas robust solar panelindustry is a global as well as nationalleader, befitting the sunniest state inthe country. As we reported, Arizonasvast desert areas offer the highest solarpower potential in the nation, and thestate is by far the leading producer of equipment to capture these rays. Tuc-son, AZ is home to some of the worlds largest photovoltaic manufac-

turers, including Schletter, Inc.,Global Solar Energy and SOLON.

Iowa snared second place in our Alternative Energy Industry Leaderscategory with its ongoing success asthe primary wind-turbine manufac-turing center and its natural positionas a major ethanol producer. Iowa ishome to six wind-turbine manufac-turing companies: Acciona, Siemens,Clipper, Hendricks, TPI and Trinity,representing thousands of green-collar

jobs and an investment of almost$250 million in the state.

The Hawkeye State is one of only two states to make three componentparts of a modern windmillturbine,blades and tower.

While Arizona and Iowa both haveestablished alternative energy indus-tries with enormous potential, we putour growth factor calculation intohigh gear when we made the remain-ing choices in this new category.

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Solar EnergyManufacturing Leaders

1. ARIZONA

2. NEW MEXICO

3. CALIFORNIA

4. NEVADA

5. TENNESSEE

Wind EnergyManufacturing Leaders

1. IOWA

2. SOUTH CAROLINA

3. KANSAS

4. ARKANSAS

5. NEVADA

Top 5 Wind PowerGeneration Leaders

1. TEXAS

2. IOWA

3. MINNESOTA

4. CALIFORNIA

5. NEW YORK

Top 5 Solar PowerGeneration Leaders

1. CALIFORNIA

2. NEVADA

3. FLORIDA

4. ARIZONA

5. NEW JERSEY

Top 5 Biomass PowerGeneration Leaders

1. CALIFORNIA

2. MAINE

3. FLORIDA

4. ALABAMA

5. GEORGIA

Top 5 Geothermal PowerGeneration Leaders

1. CALIFORNIA

2. NEVADA

3. UTAH

4. HAWAII

5. IDAHO


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Business Climate, and seventh in ournew Economic Growth Potential rank-

ing, among other top 10 placements.Residents of Utah enjoy an invig-orating four-season climate, a moder-ate cost of living, high-quality educa-tion, excellent health care andoutstanding cultural and recreationalopportunities. Utah is an excellent

place to visit and an extraordinary place to live. The state captivates vis-

itors and residents alike with its spec-tacular natural beauty, cultural offer-ings and year-round recreationalopportunities. In some seasons inUtah, it is possible to ski, golf, snow-mobile and water-ski on the sameday. Utah annually welcomes more

than 20 million visitors to natural wonders like the Arches, Bryce

Canyon, Canyonlands, Capital Reef and Zion national parks. The dry,powdery snow found at Utahs 13alpine ski resorts is widely consideredto be the greatest snow on earth.

In addition to its beautiful scenery,recreation and culture, Utah is safe,clean and affordable, creating anexceptional quality of life for the statesresidents.Utah workers have long beenconsidered one of the most productive

and well-educated populations in thecountry. Boasting the youngest work-force average in America at 28 years oldand a half-million children in K-12,the state has several decades of power-house success ahead of it.

Utahs innovative and business-ori-ented growth strategy is maximizingthe potential of these impressiveresources. Gov. Gary Herbert, whotook over as chief executive when Gov.

Jon Hunstman was named ambassa-dor to China by President Obama, hastargeted three areas on which hisadministration is focused: economic

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Employment Leaders

1. NORTH DAKOTA

2. NEBRASKA

3. SOUTH DAKOTA

4. OKLAHOMA

5. KANSAS

6. IOWA

7. UTAH

8. MONTANA

9. VIRGINIA

10. VERMONT

Automotive Manufacturing Strength

1. TENNESSEE

2. KENTUCKY

3. SOUTH CAROLINA

4. MICHIGAN

5. OHIO

6. GEORGIA

7. INDIANA

8. ALABAMA

9. MISSISSIPPI

10. TEXAS

WorkforceTraining Leaders

1. LOUISIANA

2. GEORGIA

3. NEW MEXICO

4. FLORIDA

5. NORTH CAROLINA


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development, education and energy.Utah was recognized by The Pew

Center on the States as the BestManaged State in the Nation. Thestate was cited for stability and pre-dictability in spending, tax policy anda business friendly climate.

All things considered, Utah is without a doubt living up to its nick-name: The Beehive State.

TRAINING TODAYS WORKERS

Tax credits and similar traditional

incentives often are the first tool inthe box that is put to use in sealingthe deal for a relocation or new facil-ity. However, many states now recog-nize that providing targeted work-force training potentially is the most

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931-245-4334 | www.clarksville.tn.us

Ready to grow? 40-acre pad-ready site is ready to go-just oneof the great options in the dynamic 880-acre Business Park South in Clarksville, Tennessee. A talented workforce, robustmanufacturing base, plus thriving retail and a superb qualityof life have made us the nations 9th fastest growing city.Come grow with us; youre ready and so are we.

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Best Education Climate

1. VERMONT

2. UTAH

3. KANSAS

4. NEW HAMPSHIRE

5. NEBRASKA

6. VIRGINIA

7. IOWA

8. MICHIGAN

9. CONNECTICUT

10. NEW JERSEY


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valuable and productive incentivethey can put on the table.

This year, we have chosen fivestates we believe are the nations work-force training leaders, a new rankingscategory that undoubtedly will con-tinue to grow in importance.

Louisiana stands atop the list withits FastStart workforce developmentprogram, which provides workforcerecruitment, screening and training tonew and expanding companiesall atno cost. Louisianas innovative and

customized programs are available tocompanies that meet eligibility requirements and are aligned with thestates economic development targets,including digital media, headquartersand business operations, service indus-


The Austin area offers your business the best of all worlds. Were easygoing andentrepreneurial. Pro-business and pro-environment. Get a real-time view of whatpeople are saying about greater Austin right now at www.austintexasnow.com .

Mark_321 Keep Austin Wired! Austin is being considered for a

new national broadband project.8:03 AM from web

@GreenMan77 Alternative energy companies continue to surgein Austin. We ve got the power!8:15 AM from web

Technocrat_76 Now hiring. Analysts predict Austin will add

close to 10,000 new jobs in 2010.8:28 AM from web

.


Best Business Tax Climate

1. SOUTH DAKOTA

2. WYOMING

3. ALASKA

4. NEVADA

5. FLORIDA

6. MONTANA

7. NEW HAMPSHIRE

8. DELAWARE

9. WASHINGTON

10. UTAH


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tries, advanced and traditional manu-facturing, warehouse and distribution

and research and development.To qualify, a facility must firstcommit to creating a net of at least 15new, permanent manufacturing jobs,or a net of at least 50 new, permanentservice-related jobs. Service indus-tries, headquarters and business oper-ations, and warehouse and distribu-tion companies also must have amajority of sales out of state. Eachrequest is evaluated prior to project

commencement to ensure all eligibil-ity requirements are met.Louisiana FastStarts partners

include the Louisiana WorkforceCommission, the Louisiana Commu-nity and Technical College System

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Best Transportation Infrastructure

1. CALIFORNIA

2. FLORIDA

3. TEXAS

4. NEW YORK

5. PENNSYLVANIA

6. ILLINOIS

7. GEORGIA

8. UTAH

9. TENNESSEE

10. ALASKA


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and local colleges and universitiesaunique model that enables stream-

lined, efficient pre-employment train-ing, and access to a network of adulteducation resources.

Also in the top tier is FloridasQuick Response Training Program(QRT), which provides grant fund-ing for customized training for new or expanding businesses.

Workforce Florida, Inc. admin-isters the program. An employer-driven training program, QRT has

provided customized training for well over 100,000 employees formore than 300 businesses through-out the state, jump-starting new ventures and easing the way fornumerous expansions.


Global market access. Excellent labor force. Centralized transportation routes. Low energy costs. Thousands of

businesses have already discovered what makes Nebraska a place of unequaled potential. Theres ample opportunity

for you, too. Consider this your personal invitation to enjoy everything that makes business in Nebraska great.

Sites.nppd.comNEBRASKA PUBLIC POWER DISTRICT

Nebraska

800.282.6773, ext. 5534 | [email protected] G 1 3 3 6 0 5


Workforce Health and Safety

1. NEW JERSEY

2. MASSACHUSETTS

3. CONNECTICUT

4. VERMONT

5. MARYLAND

6. NEW YORK

7. HAWAII

8. VIRGINIA

9. MINNESOTA

10. NEW HAMPSHIRE

Documents

Business Facilities State Rankings