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CNBC ranks Texas 5th top state for doing business

Cable news channel CNBC recently released its annual America’s Top States for Business rankings, placing the Lone Star State No. 5. This may be surprising to some, given the steady migration of companies relocating their headquarters to Texas over the past couple of years. The 24-hour cable business channel scored all 50 states on 10 categories containing 88 metrics, resulting in the top five:

  1. North Carolina
  2. Washington
  3. Virginia
  4. Colorado
  5. Texas

The network’s 2022 rankings are based on the frequency states use specific economic attributes to sell themselves. Here are five categories and how Texas fared overall:

Workforce – No. 2

With a May unemployment rate of 4.2%, the Lone Star State finished behind Colorado at 3.5%. Texas boasts a “large, skilled, and diversified workforce” as one of the reasons why it is the best choice for business. The state’s low tax rates are also a factor.

Technology & innovation – No. 4

Texas was already considered a global leader in technology before Elon Musk moved Tesla headquarters to Austin. Large tech companies, like Apple and others, employ nearly a quarter of a million workers.

Economy – No. 8

According to CNBC, Texas’ Gross Domestic Product (GDP) ranks eighth in the U.S. and is the ninth largest world economy. The state’s GDP rose by 10.1% in the last quarter of 2021, compared to the national average of 6.9%.

Business costs – No. 12

The survey finds entrepreneurs have an advantage in Texas as operating costs are relatively low. The Texas Economic Development Council says the state continues to prosper from being a right-to-work state and will continue to invest in maintaining its competitive advantage.

Infrastructure – No. 14

Texas has been America’s top exporter for two decades and is the primary handler of the nation’s cargo. According to the survey, the biggest challenge is the state’s continuing power grid issues.

While the survey labeled the state as having a “business-friendly” climate offering a solid foundation for companies of all sizes to thrive, it ranked 34th on the list. The state’s lowest ranking at 49 is in the “Life, Health & Inclusion” category. The study mentions recent mass shootings, legislation restricting abortion rights and fears over similar attempts to scale back protections for same-sex marriages and gender identity rights.