Last week brought the welcome news that Virginia is back where it belongs — the No. 1 state in the country for business. CNBC’s annual ranking returned the commonwealth to the top spot for the first time since 2021 and the sixth time since those rankings began in 2007.
While the cable station’s pronouncement may not be a definitive evaluation of business climate across the nation, it does cast Virginia in a positive light that may help attract new companies, facilitate economic growth and improve opportunities for workers. It shows the commonwealth is on the right path and that investment in areas such as education, infrastructure and workforce development are paying off.
Virginia topped the list in 2021, 2019, 2011, 2009 and 2007, the most of any state since CNBC began this work. It narrowly bested North Carolina this year, in what the cable station said was its closest finish for the coveted rank. Our southern neighbors took the crown in the two previous years.
The methodology changes annually, and CNBC researchers weigh each evaluative category based on their urgency in a given year. As the nation slowly emerged from pandemic shutdowns in 2021, for instance, the cost of doing business was considered the most important metric. Last year, CNBC emphasized a state’s workforce when compiling the rankings.
This year, in the wake of the Francis Scott Key Bridge disaster in Baltimore, infrastructure topped the list — and the cable station praised the commonwealth for its array of shovel-ready sites that have a new business up and running in short order. It also cited Virginia’s digital infrastructure, with 70% of global internet traffic flowing through data centers and cables throughout the commonwealth.
The high praise for Virginia’s infrastructure may seem curious to Hampton Roads residents used to daily traffic snarls at the bridge-tunnels, but our region has seen vast improvements since then-Gov. Bob McDonnell and the General Assembly agreed on a landmark transportation bill that established dedicated taxes to pay for road construction.
A spirit of bipartisanship in Richmond secured that achievement, and CNBC praised the cooperative work of Republicans and Democrats that delivered substantial investments in education this year. Virginia was ranked No. 1 for education in the 2024 evaluation and the study cited increased funding for K-12 schools and higher education as reasons for the commonwealth’s enviable status.
The cable station viewed our divided state government — which forced Republican Gov. Glenn Youngkin and Democratic legislative leaders to find common ground — for a budget compromise that avoided significant changes to tax policy. While modernization of the tax structure is needed, officials avoided drastic steps this year that could have put Virginia on an uncertain path.
Not all is wonderful in CNBC’s eyes. There are concerns about power reliability, due in large measure to the proliferation of data centers. Not enough educated workers are moving to the commonwealth, though Amazon’s growing footprint in Northern Virginia may help. Cost of living and quality of life also received modest marks compared to other states.
It’s also important to note that CNBC compiled these rankings through the lens of business needs, not through the eyes of workers. Just as Virginia needs shovel-ready sites and an educated workforce, it must tend to those who toil, through competitive wages, skills training and strong social safety net programs.
Virginia has long struggled to retain college graduates once they earn degrees, a problem that continues to vex state leadership. The ADP Research Institute this month ranked the “Virginia Beach-Norfolk-Newport News” area as the second-worst metro region for recent college graduates, blaming comparatively low wages, lack of job opportunity and low affordability. The Raleigh-Durham area topped the list.
Still, taken in sum, this is another feather in Virginia’s cap and a clear signal to businesses, both established here and considering relocation, that the commonwealth is a desirable place to open shop. Rather than being in a ditch, as some have claimed, Virginia is leading the way thanks to leaders of opposing parties coming together on issues that matter.
