GSA Daily Staff Report
Published Nov. 1, 2010

Site Selection magazine has named South Carolina the state with the No. 5 business climate for 2010. North Carolina was the top state in the November issue of the magazine.

Research based in part on a survey of corporate real estate executives has identified the Tar Heel State's overall climate for capital investment to be tops in the United States for the ninth time in the last 10 years.

Tennessee placed second this year, followed by Texas, Virginia and South Carolina.

“Fifth-ranked South Carolina is quietly becoming a transportation-industry powerhouse, with automotive investment clustering in the Upstate and aerospace anchored by Boeing in N. Charleston, with many other sector projects announced in recent years,” the story said. “But the Palmetto State’s business climate is about more than those two industries. On June 23, Gov. Mark Sanford signed H.4478, a bill aimed at enhancing South Carolina’s ability to attract jobs and investment and compete in a global marketplace.”

Among North Carolina's strengths, according to executives associated with projects there, are its extensive higher education resources, work force training initiatives, moderate climate and transportation infrastructure. With sea, rail and highway assets, the state has both a US Airways hub at Charlotte and a FedEx regional hub at the Piedmont Triad International Airport in Greensboro.

Another factor is the governor's proactive approach to business recruitment.

"People across the state and many businesses around the country know that I'll take any call and go anywhere to bring a business to our state or expand a business or create a small business in North Carolina," said Gov. Bev Perdue. "We have been very aggressive, and that has paid off."

The annual business climate rankings are determined 50% by performance of the state in Conway Data Inc.'s new plant database, which tracks new and expanded business facility activity, and 50% by a survey of corporate site seekers across the country.

Site selectors also were asked to rank the factors most important to them when determining a location for a new facility. The top three factors this year are work force skills, state and local tax schemes and transportation infrastructure.

The biggest mover in the ranking from last year's lineup is Louisiana, which jumped from 25th place in 2009 to ninth place this year.

"All states face economic and budgetary challenges these days, but this ranking reminds us that there are significant success stories, too," said Site Selection Editor in Chief Mark Arend. "North Carolina's first place finish underscores its success across a wide spectrum of industries, from aerospace to life sciences to energy. We commend the governor and her economic development team for their focus on making and keeping their state business-friendly."

TOP TEN STATE BUSINESS CLIMATES 2010

1. North Carolina
2. Tennessee
3. Texas
4. Virginia
5. South Carolina
T6. Georgia
T6. Ohio
8. Indiana
9. Louisiana
10. Alabama