Texas remains a top performer but got bumped from fourth to fifth-best state for business, according to a 2022 ranking by CNBC released Wednesday.
The Lone Star State has retained its top-five position for the past 16 years, asserting its market dominance by drawing businesses and people to the region. Texas has recently seen moves by Caterpillar, Chevron, Alto, and others.
Texas is the home to 54 Fortune 500 companies and has no problem attracting companies and people to the state, said Renae Eze, Gov. Greg Abbott’s press secretary. The state offers “unmatched competitive advantages such as no corporate or personal income taxes, a predictable regulatory climate, and a young, growing, and skilled workforce,” Eze said.
Chief Executive magazine ranked Texas among its top performers for almost two decades. In addition, Texas has earned Site Selection magazine’s Governor’s Cup award since 2012.
The rankings show Texas “continues to be an economic powerhouse,” wrote Robert Allen, president and CEO of the Texas Economic Development Corporation, in an email. “With one of the best workforces and regulatory environments in the nation, businesses are continuing to move [to] and expand in Texas, which is now home to more Fortune 500 companies than any other state.”
However, many arrive to find a growing set of issues, wrote Scott Cohn, a CNBC special correspondent. According to Cohn, Texas has limited childcare options and the highest percentage of residents without health insurance.
While Texas touts having the second-strongest workforce and the eighth-strongest economy, the state is ranked No. 34 for business-friendliness and second-worst in the nation for life, health, and inclusion. Texas is also one of five states without an anti-discrimination law covering nondisabled people.
The ranking system compares data across ten categories and weighs the results based on how effective states market themselves to businesses. North Carolina was ranked No. 1 with the strongest economy in the nation, No. 5 for technology and innovation, and No. 28 for life, health, and inclusion. Washington, Virginia, and Colorado edged out Texas, while Mississippi fell into last place in this year’s ranking.