CNBC Ranks Minnesota 6th on ‘Top States for Business’ Survey
Minnesota ranked sixth on CNBC’s Top States for Business 2018 survey, which was released on Tuesday morning. While that’s a strong showing, it shows the state continuing to slip in CNBC’s business climate ratings: Minnesota was named its best state for business in 2015.
The state ranked fourth on CNBC’s 2016 list and third on the 2017 survey. CNBC’s survey is based on “more than 60 measures of competitiveness” which are then organized into 10 broader categories.
In its latest analysis, CNBC ranked Minnesota third for quality of life. The state also ranked fifth in education and technology/innovation categories and placed 6th in the infrastructure section. The state ranked much lower in other categories, placing 38th for the “cost of doing business” and 28th for “business friendliness.” But the business friendliness ranking is actually five spots higher than last year, when Minnesota tied for 33rd place in that category.
In most of CNBC’s categories, there was not much difference between the state’s standing in 2018 versus 2017. The exception was the overall “economy” category where the state dropped from 6th place last year to 18th this year. That section weighs many factors including economic growth, job creation, consumer spending, the residential real estate market and the number of major corporations based in a state.
Other studies have taken a different read on the state’s business climate. Last fall the Washington D.C.-based Tax Foundation ranked Minnesota near the bottom on its State Business Tax Climate Index. Minnesota placed 46th on that survey.
For 2018 CNBC ranked Texas as the best state for business followed by Washington, Utah, Virginia and Colorado. Alaska finished in last place. Minnesota fared notably better than its neighboring states: Wisconsin (17th), Iowa (18th), South Dakota (20th – tie with Arizona) and North Dakota (29th).