Michigan was ranked as the nation’s No. 10 best state for business this year, according to CNBC.
The states ahead of Michigan, starting with the number one state for business, are North Carolina, Virginia, Tennessee, Georgia, Minnesota, Texas, Washington, Florida and Utah. Michigan was ranked 16th best in 2022.
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With the help of business experts, policy experts, CNBC ranked all 50 states based on 86 metrics in 10 different categories and “economic development marketing materials” states use to sell themselves. For example, if more states are talking about their workforce, the workforce category is worth more points.
The spot Michigan was ranked in each of the 10 categories were 24 in workforce, 26 in infrastructure, 29 in economy, 24 in life, health and inclusion, 6 in cost of doing business, 12 in tech and innovation, 15 in business friendliness, 36 in education, 10 in access to capital, and 7 in cost of living.
Under these factors, states could earn a maximum of 2,500 points. To keep the playing field fair, some metrics are measured on a per person basis.
An explanation of each category are as follows:
- Workforce (400 points) - The concentration of STEM workers, of workers with college degrees, with associate degrees and industry-recognized certificates. How successful the state is at attracting qualified workers at all levels. Training programs, right-to-work laws and worker productivity based on economic output per job.
- Infrastructure (390) - The quality of the state’s transportation system and how goods are shipped, the time it takes to commute, the price of broadband in each state, access to markets, and the viability of vacant land and industrial space. This category was also based on utility infrastructure including, the condition of drinking and waste water systems, reliability of the electrical grid, and the availability of renewable energy. The state’s sustainability in the face of climate change concerning the risk of flooding, wildfire and extreme weather are also considered.
- Economy (360) - Economic and fiscal growth during the year, spending, revenues and reserves, pension obligations, the real estate market and entrepreneurial economy.
- Life, health and inclusion (350) - Crime rates, environmental health, health care, worker protections against discrimination, affordable childcare and abortion laws.
- Cost of doing business (290) - The state’s tax burdens, and strength of business tax climate, wage and utility costs, costs off offices and industrial space, tax incentives and breaks, and incentives targeting development in disadvantage communities.
- Technology and innovation (270) - Number of patents issued per person, health, science research grants, agriculture research grants, semiconductor research, development and manufacturing.
- Business friendliness (215) - Measuring a state’s legal framework that does not overburden businesses including lawsuit and liability climates, regulations on trade and labor, overall bureaucracy, how hospitable toward emerging industries like cryptocurrency.
- Education (125) - Test scores, size and spending in K-12 schools. The number of colleges, historically Black colleges, and universities that the state’s support for them. Employees with marketable, industry-recognized skills.
- Access to capital (50) - Venture capital investments, bank lending and state-backed capital and loan grantee programs.
- Cost of living (50) - The cost of basic items and an emphasis this year on housing affordability.
To see the full rankings, click here.