This article examines the top 20 US states for business locations in 2023, while analyzing strategic competitive moves by some of America's largest companies. If you want to skip the detailed analysis, you can go directly to the next page. Top 5 states for business in America in 2023.
thriving business environment
The competitiveness of a company in a particular location can be attributed to several factors provided by the business environment. In the case of the United States, factors such as workforce, government policies, access to capital, and strong business infrastructure contribute to the success of businesses in different states. Let's take a look at the state of the business environment in this country.
June 15th, CNBC report The country has a tight labor market, with job openings outstripping available workers. As a result, companies are moving to states that attract incoming talent. Corporate taxes and the extent of government support also influence decisions to expand or relocate between states. For example, Texas is a highly recommended destination for business. The state was also ranked as having the best business climate at the International Economic Development Council's annual conference in Dallas. September 18, Texas Economic Development Corporation report Companies prefer to locate in Texas because there is no state income tax and the government's regulatory structure is supportive, he said.
Multinational companies domiciled in low-tax business states
According to the submitted documents report According to the U.S. Securities and Exchange Commission, U.S. companies had the highest rate of headquarters relocations between March 2022 and March 2023. Whether to cut costs, benefit from lower corporate taxes, or target their target markets more closely, many globally operating companies are moving their headquarters from high-tax states to low-tax states. . Some of these companies include Tesla, Inc. (Nasdaq:TSLA)Caterpillar Corporation (New York Stock Exchange:Cat), and Hewlett Packard Enterprise Company (NYSE:HPE). The LEGO Group is also planning such a transition for the future. You can also see the top US companies with the highest profit margins.
Tesla, Inc. (NASDAQ:TSLA) is a leading manufacturer of electric vehicles. The company is also one of the largest suppliers of battery energy systems worldwide. Back in 2021, the company moved its headquarters from California to Texas. The rationale behind this transition is: report In October 2021, Reuters reported that while California has high housing and living costs, Texas has a cheaper workforce, no state income tax, and less stringent regulations for businesses. Ta. However, on February 22, Forbes reported that the EV maker is considering returning its engineering headquarters to its golden days. Although the exact timeline for this move has not yet been specified, CEO Elon Musk announced that the company will be moving its headquarters to Palo Alto after his two-year stay in Texas.
Caterpillar Corporation (NYSE:CAT) is a leading global manufacturer of construction equipment. June 15, 2022, Reuters report The company announced plans to move its headquarters from Illinois to Texas. The company did not disclose the incentives from Texas that prompted the move, but the governor believed the state was a “best fit” for the company. No state income tax and reduced labor costs can also be taken into account with this strategic business move for the company.
On August 1, Caterpillar Inc. (NYSE:CAT) reported strong financial results for the second quarter of 2023. The company reported earnings per share of $5.55, beating EPS estimates by $0.97. The company's revenue for the quarter was $17.32 billion, up 22% year-over-year and beating revenue consensus by $788.99 million.
Hewlett Packard Enterprise Company (NYSE:HPE) is a multinational information technology company based in the United States. On April 4, 2022, we report A new headquarters was dedicated in Houston, Texas. The company announced its commitment to fully relocate from California to Texas over the course of two years and to help employees in the relocation process settle into the new headquarters. The company previously said It said it announced the move as a way to save costs, attract potential talent and leverage the company's presence in the region, which it also calls “a great place to do business.”
On August 29, Hewlett Packard Enterprise Company (NYSE:HPE) reported earnings for the third quarter of fiscal 2023. The company had earnings of $0.49 per share, beating EPS estimates by $0.02. The company's revenue for the quarter was $7.0 billion, an increase of 0.73% year over year, beating the revenue consensus by $6.32 million.
In addition to Tesla Inc. (NASDAQ:TSLA), Caterpillar Inc. (NYSE:CAT), and Hewlett-Packard Enterprise Company (NYSE:HPE), the Lego Group, the world-famous toy manufacturer, is also a potential business. I'm paying attention. of the state. On January 26th, the LEGO Group announced The company announced that it will move its headquarters from Connecticut to Boston by the end of 2026. The company has also decided to help employees relocate to the new Boston office if they wish to do so. The company's Connecticut office has been there since 1975. Elaborating on the move, CEO Skip Kodak said:
“Boston ranks as one of the best cities for attracting and retaining talent. Along with its world-class academic institutions, skilled workforce, and excellent quality of life, Boston is an ideal location for our U.S. headquarters. It has become a great place.”
So let's take a look at some of the top states for business in the US in 2023.
Top 20 states for business in America in 2023
To create our list of America's top 20 states for business locations in 2023, we chose employment growth over the past 10 years as our metric. The rationale behind this index was that the top states for business attract the most companies and therefore create the most jobs. To examine employment growth rates over the past decade, we obtained employment numbers for all U.S. states from 2012 to 2022 from the U.S. Bureau of Economic Analysis. employment statistics. The latest employment numbers for each state are from 2022. Therefore, employment growth from 2012 to 2022 is expressed as a percentage change, and the U.S. states with the highest percentage change in employment were selected as the top 20 in America. States to start operations in 2023.
Below are the top 20 states for business in America in 2023, ordered by ascending job growth rate from 2012 to 2022.
Top 20 states for business in America in 2023:
Cumulative employment growth rate over 10 years: 15.29%
Alabama will be the top US state for business in 2023. The state maintains thriving business values by offering a favorable business environment and excellent workforce training, making it a potential attraction for large companies to settle.
Cumulative employment growth rate over 10 years: 16.86%
Virginia's ease of doing business and access to capital will make it one of the 20 best states for business in the United States by 2023. The government is also preparing industrial land for future mega-projects by large companies.
18. New Jersey
Cumulative employment growth rate over 10 years: 17.61%
New Jersey's economy has been growing recently, showing its importance as one of the top states for business in the United States in 2023. The state's quality of life is also characterized by low crime and inclusiveness, which attracts workers to the state.
Cumulative employment growth rate over 10 years: 17.85%
Massachusetts also emerged as one of the best states for business in the United States in 2023. The state has seen improvements in business friendliness, access to capital and business inclusivity.
Cumulative employment growth rate over 10 years: 18.70%
Montana also ranks on the list of top U.S. states for business locations in 2023. The state is attractive to companies because of its low cost of doing business and fast-growing technology industry.
Tesla, Inc. (NASDAQ:TSLA), Caterpillar Inc. (NYSE:CAT), and Hewlett Packard Enterprise Company (NYSE:HPE) are established American companies with strong financial foundations in their respective industries.
Cumulative employment growth rate over 10 years: 19.74%
The 2023 list of America's best states for business also includes Oregon. The state is known for its highly skilled workforce. The state's economy is also growing due to increased trade and tourism, creating favorable conditions for businesses.
Cumulative employment growth rate over 10 years: 21.89%
Delaware could be America's business destination in 2023. New businesses are emerging in the state. The state's proximity to cities like Baltimore and Philadelphia makes it ideal for companies to capture the region's market.
Cumulative employment growth rate over 10 years: 22.42%
California's technology industry is growing, allowing investment from major technology companies. The state also has access to funding for businesses and is poised to become one of the top states for business in the United States by 2023.
Cumulative employment growth rate over 10 years: 23.19%
Washington state's economy is strong, so it has a lot to offer businesses. The state's high GDP will make it one of the most favorable states for business in the United States by 2023.
11. North Carolina
Cumulative employment growth rate over 10 years: 23.26%
Another favorable state in the US for business in 2023 is North Carolina. The state's workforce training program is highly effective, and its employees are well-educated and engaged, further increasing the state's potential as a business location.
Cumulative employment growth rate over 10 years: 23.97%
Tennessee is also among the top U.S. states for business in 2023. The state has a rich talent pool and infrastructure that can support the growth of businesses in the state.
U.S.-based companies that have successfully expanded globally include Tesla Inc. (NASDAQ:TSLA), Caterpillar Inc. (NYSE:CAT), and Hewlett-Packard Enterprise Company (NYSE:HPE).
9. South Carolina
Cumulative employment growth rate over 10 years: 25.02%
South Carolina is also a highly rated US state for business locations in 2023. The state's relatively low corporate tax rate makes it ideal for businesses to settle or expand in the state.
Cumulative employment growth rate over 10 years: 28.35%
Colorado ranks among the top U.S. business states in 2023. This is thanks to our skilled workforce and comprehensive sense.
Cumulative employment growth rate over 10 years: 29.47%
Georgia will also rank among the top U.S. states for doing business in 2023. Georgia has a supportive business environment and low business costs, making it attractive to U.S. companies.
Cumulative employment growth rate over 10 years: 30.04%
Texas has a high rate of employment growth and a strong economy. These conditions make it worthwhile for companies to operate in the state.
Click to keep reading to see America's top 5 states for business locations in 2023.
Disclosure: None. Top 20 states for business in America in 2023 Originally published on Insider Monkey.