Ohio Leads America’s Top States for Business Rankings in 2024

Ohio has secured the top position in CNBC’s 2024 “America’s Top States for Business” rankings, marking a significant rise for a state that ranked 30th in the inaugural 2007 study. The state earned the No. 1 ranking by excelling in infrastructure and maintaining a competitive cost of doing business, according to the official report released by CNBC.

Infrastructure Advantages Drive Economic Growth

Ohio currently ranks No. 1 in the infrastructure category, which CNBC identifies as the most heavily weighted factor in its methodology. The state’s geographic positioning is a primary driver; more than 143 million people—roughly 43% of the U.S. population—live within a day’s drive of the state, providing companies with extensive market access.

The state has aggressively pursued industrial readiness. According to data from the Site Selectors Guild, Ohio invested $175 million into site-readiness programs last year, ranking second only to California. The state’s economic development agency, JobsOhio, maintains a database of “SiteOhio Authenticated” locations designed to be construction-ready immediately.

Cost Competitiveness for Businesses and Residents

Ohio holds the top spot for the “Cost of Doing Business” category. Real estate data from CoStar indicates that industrial and office rents in the state remain among the lowest in the U.S. Furthermore, the state government reported providing over $1 billion in tax incentives to businesses during the last fiscal year.

The state also performs well for individual residents, ranking No. 9 in the “Cost of Living” category. Housing costs remain a significant factor in this high ranking, as they are among the most affordable in the nation.

Workforce Challenges and Educational Attainment

Despite its top-tier ranking, Ohio faces clear challenges regarding its workforce. The state ranked No. 35 in the “Workforce” category, a weakness attributed to educational attainment levels. According to U.S. Census Bureau data, approximately 19% of Ohio adults hold a bachelor’s degree or higher, placing the state in the bottom tier nationally.

To address this skills gap, JobsOhio announced in June 2024 an initiative to invest $300 million over the next decade to recruit and train workers. The agency projects a need for 540,000 workers in science, technology, engineering, and math (STEM) fields to sustain the state’s economic trajectory.

Comparative Rankings of Other States

The 2024 rankings highlight a competitive landscape among the top five states:

• North Carolina: Finished at No. 2, narrowly missing the top spot by nine points. The state remains a leader in economic growth but faces rising costs, ranking 35th in cost of living.
• Virginia: Secured the No. 3 spot, buoyed by its strong infrastructure and education systems, though it saw a decline in its economic ranking due to federal budget adjustments.
• Texas: Ranked No. 4, leading in workforce and capital access, though it scored 49th in quality of life due to metrics involving healthcare and crime.
• Minnesota: Placed No. 5, earning high marks for quality of life and healthcare, though it remains a higher-cost state for businesses and residents.

Frequently Asked Questions

How does CNBC determine these rankings?
CNBC evaluates all 50 states across 10 categories, including infrastructure, economy, workforce, and cost of living. The methodology assigns weights to each category based on how frequently states cite them as selling points in their economic development pitches.

What is the primary factor in Ohio’s success?
Ohio’s No. 1 ranking is primarily driven by its top-ranked infrastructure, which includes extensive site-readiness programs and central geographic access to major U.S. markets.

What is the “Workforce” ranking based on?
The workforce category considers educational attainment, the availability of skilled labor, and the ability of states to attract and retain talent, as measured by labor analytics firms like Lightcast.