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America's Top States for Business 2026: Ohio Claims the No. 1 Spot
about 2 months agoUS
Compiled by Yanuki using the latest trends and data, CNBC's 20th annual **Top States for Business** study has ranked all 50 U.S. states across **138 metrics** in **10 categories of competitiveness**. In 2026, **Ohio** captured the No. 1 spot for the first time, capping a yearslong rise. Infrastructure emerged as the top-weighted category, reflecting companies' growing focus on strategic locations with robust utilities, transport hubs, fresh water access, and abundant energy for advanced manufacturing and data centers.
Key Insights
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Ohio (#1): unseated previous leaders thanks to strong scores in Infrastructure (1st), Cost of Doing Business (1st), and a broad, balanced performance across all categories.
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Infrastructure: became the highest-weighted category in 2026 for the first time, as companies prioritize locations near transport hubs, energy, and water access without permitting red tape.
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Top 5 overall: Ohio, North Carolina, Virginia, Texas, and Minnesota.
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Bottom 5: West Virginia (#46), Louisiana (#47), Rhode Island (#48), Alaska (#49), and Hawaii (#50).
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Why this matters: The rankings shift reflects a broader economic trend—states investing heavily in infrastructure, workforce development, and business-friendly policies are winning the site-selection race as advanced manufacturing and AI-driven industries expand.
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Historical context: CNBC has conducted this study since 2007, and the categories are re-weighted annually. In 2025, Economy was the top category; in 2026, Infrastructure took precedence.
In-Depth Analysis
How the Rankings Work
CNBC scored all 50 states on 138 metrics across ten categories: Infrastructure, Economy, Workforce, Quality of Life, Cost of Doing Business, Technology & Innovation, Business Friendliness, Access to Capital, Education, and Cost of Living. Each category is weighted based on how frequently states use it as a selling point in economic development efforts.
Why Infrastructure Took the Lead in 2026
For the first time in the study's history, Infrastructure became the top-weighted category. This shift mirrors real-world demand: companies pursuing strategic locations for advanced manufacturing, data centers, and logistics need reliable energy, water, and transport connections—and they want it without excessive permitting delays. Ease of permitting was factored into the rankings for the first time in 2026.
Ohio's Path to No. 1
Ohio's first-place finish didn't happen overnight. The state scored:
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Infrastructure: 1st
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Cost of Doing Business: 1st
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Economy: 9th
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Workforce: 35th (a relative weakness, but balanced by other strengths)
The Ohio Chamber of Commerce has actively promoted the ranking while pushing for policy changes, including an end to the state's capital gains tax, to further improve the business climate.
Runners-Up and Regional Trends
North Carolina (#2) led in Economy (1st), while Virginia (#3) excelled in Infrastructure (2nd) and Education (5th). Texas (#4) dominated in Workforce (1st) and Access to Capital (2nd). The Midwest—Ohio, Minnesota (#5), Michigan (#6), Indiana (#10)—showed strong overall performance, signaling a regional manufacturing and logistics renaissance. Southern states like Georgia (#7), Florida (#8), and Tennessee (#9) also maintained top-10 positions.
FAQs
What changed in the 2026 methodology compared to previous years?
Infrastructure became the top-weighted category for the first time, replacing Economy (which slipped to second). Ease of permitting was also added as a new factor within the Infrastructure category, reflecting companies' desire to avoid red tape.
Why did Ohio rank No. 1 despite a low Workforce score (35th)?
Ohio's overall score benefited from top-tier rankings in Infrastructure (1st), Cost of Doing Business (1st), and strong showings in Economy (9th), Access to Capital (9th), and Cost of Living (9th). The weighted methodology allows states to compensate for weaknesses with strengths in higher-weighted categories.
Which state improved the most?
According to CNBC, Arkansas was named America's Most Improved State in 2026, driven by low costs and a rising quality of life as workers move to Walmart's home state.
Key Takeaways
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For business owners and entrepreneurs: Use this ranking to evaluate potential locations for expansion or relocation. States with strong infrastructure and business-friendly policies (like Ohio, Texas, and Indiana) offer lower operational risks.
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For job seekers: States like North Carolina (top economy), Texas (top workforce), and Virginia (top education) indicate strong labor markets and high quality of life.
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For policymakers: The emphasis on infrastructure and permitting shows that reducing bureaucratic hurdles and investing in utilities and transport can directly attract business investment.
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For investors: Keep an eye on rising Midwestern states—Ohio, Michigan, and Indiana—as their improving business climates may signal economic growth and new opportunities.
Discussion
Do you think Ohio can hold onto the No. 1 spot next year, or will another state rise to the top? Share this with others who need to stay ahead of this trend!
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*"Do you think this trend will last? Let us know!"*
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