News Summary
North Carolina has been named ‘America’s Top State for Business’ by CNBC, marking the third time in four years that the state has achieved this ranking. Despite challenges in cost of living and regulatory frameworks, strong economic growth and job creation have bolstered its appeal. Significant investments, including Amazon’s and JetZero’s expansion in the state, contribute to its competitive edge. The state’s favorable business policies and workforce strengths position it well for future growth as it addresses ongoing challenges.
North Carolina has reclaimed the title of ‘America’s Top State for Business in 2025’, as designated by CNBC. This achievement marks the third time in four years that the state has earned this prestigious ranking, previously securing the top spot in 2022 and 2023 while finishing second in both 2021 and 2024.
CNBC’s annual ranking evaluates all 50 states based on 135 metrics across ten categories of competitiveness, including economy, business friendliness, workforce, and infrastructure. North Carolina’s performance was notably strong, finishing fourth in business friendliness and workforce, and third in overall economic performance. However, the state ranked lower in other important areas, coming in at 23rd for cost of living, 29th for quality of life, and 21st for the cost of doing business.
North Carolina’s economy showed robust growth last year, with a Gross Domestic Product (GDP) increase of 3.7%. The state also added over 60,000 jobs during the same period, indicating a significant boost in employment opportunities. This growth is partly attributed to substantial investments in the region, including JetZero, an aviation startup that announced plans to establish a factory in Greensboro, which is expected to create 14,500 jobs. Additionally, Amazon plans to invest $10 billion in new data centers across North Carolina, adding to its previous investment of $12 billion in the state since 2010.
The state’s appeal to businesses is enhanced by its access to a qualified labor force and a competitive corporate tax structure, with North Carolina acknowledged for having the lowest corporate income tax rate among states that tax corporate income. Despite these advantages, the state faced challenges, including not ranking in the top 10 for energy cost and lacking a favorable regulatory framework.
Legislation enacted by the Republican-led General Assembly since 2011, aimed at lowering regulatory hurdles and reducing tax rates, has been credited with fostering a favorable business climate. The state ranks third in net in-migration of college-educated workers, highlighting its attraction as a destination for skilled labor.
North Carolina’s strengths in business create a counterbalance to its shortcomings, reflected in the study’s results. Challenges persist, such as recovery efforts from the damage inflicted by Hurricane Helene, which caused nearly $60 billion in destruction. Nevertheless, the CNBC report highlights North Carolina’s overall strength and capability for innovation, despite the current political divides affecting the state.
In comparison, other states in the top five rankings include Texas, Florida, Virginia, and Ohio. In contrast, the bottom five states, reflecting the most challenging business environments, include Alaska, Hawaii, Montana, Rhode Island, and Louisiana.
In conclusion, North Carolina’s designation as ‘America’s Top State for Business in 2025’ is a testament to its strong economic performance, favorable business policies, and ongoing investments that drive job growth. As the state moves forward, it will be essential to address the identified weaknesses while continuing to leverage its strengths to maintain its competitive edge in the business landscape.
Deeper Dive: News & Info About This Topic
- CNBC: North Carolina Top State for Business
- Wikipedia: North Carolina
- Business North Carolina: North Carolina Tops CNBC
- Google Search: North Carolina business rankings
- News Observer: North Carolina Business News
- Google Scholar: North Carolina business economy
- NC Newsline: North Carolina Ranked Top State for Business
- Encyclopedia Britannica: Business
Author: STAFF HERE FLORENCE WRITER
FLORENCE STAFF WRITER The FLORENCE STAFF WRITER represents the experienced team at HEREFlorence.com, your go-to source for actionable local news and information in Florence, Florence County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Florence Festival of Lights, Pee Dee Pride, and agricultural expos at the Florence Center. Our coverage extends to key organizations like the Florence Regional Chamber of Commerce and the Pee Dee Area Council of Governments, plus leading businesses in healthcare and retail that power the local economy such as McLeod Health and Pee Dee Electric Cooperative. As part of the broader HERE network, including HERECharleston.com, HEREColumbia.com, HEREGreenville.com, and HEREHiltonHead.com, we provide comprehensive, credible insights into South Carolina's dynamic landscape.
