CNBC Annual List Ranks State 34 For Business In 2015
In CNBC’s America’s Top States for Business ranking, Arizona fell to number 34 this year, down from 13 in 2014. The Phoenix Business Journal reports that the steep decline in the state’s business ranking “hit especially hard, because Arizona scored poorly in a number of categories normally considered points of pride in competitiveness including education,” where the state was ranked 49, with only Nevada faring worse. However, the state was ranked 9 in terms of infrastructure, 13 for “business friendliness”, and 14 for its workforce. There are “60 measures of competitiveness” used in CNBC’s annual rankings. Factors that are weighed most heavily include business costs, “quality of life,” the state’s economy, infrastructure, and workforce. Other key metrics include education, “cost of living,” access of capital, and “technology and innovation.” In addition to scoring poorly on education, Arizona also saw rankings in the lower half for its economy, quality of life, and access to capital.
Commenting on the rankings, CNBC notes that Arizona was the state that saw the largest decline in its ranking for the year, largely due to the state’s economy, which was ranked 36 this year after being ranked 15 in 2014. Though “the state is still adding jobs, overall economic growth has slowed considerably to 1.4% last year, or roughly half the rate two years ago,” CNBC explained. Additionally, the state has “a $1 billion budget shortfall that necessitated painful cuts earlier this year.” CNBC noted that two of the state’s counties have a case pending before the state Supreme Court that seeks to block some of the budget cuts, and until that case is resolved “the uncertainty is no help to the state economy—or to businesses.”
What This Means For Small Businesses
CNBC’s annual ranking of the business-friendliness of states is one metric small business owners can use to determine future plans. Phoenix-area small business owners, therefore, may see some troubling indicators in this year’s rankings that Arizona is becoming a less attractive place to do business.
Additional Reading
NFIB recently noted Phoenix’s ranking as a top destination for retirees.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.
